A newborn child receives a $18000 gift toward a college education from her grandparents. how much will the gift be worth in 18 years if it is invested at 6% interest rate compounded quarterly?

$52,581

Step-by-step explanation:

To solve this problem, we can apply the formula for the compounded interest, which is:

where

A is the amount after time t

P is the principal

r is the rate of interest

n is the number of times the interest is compounded in a time t

t is the time

In this problem, we have:

P = $18,000 is the principal

t = 18 y is the time (18 years)

r = 0.06 is the rate of interest (6%)

n = 4, since the interest is compounded quarterly

Therefore, we find