Suppose that when your friend was born, your friend's parents deposited $4000 in an account paying 5.4% interest compounded . What will the account balance be after 19 years?
N=19; R=0.054;PV=4000; FV=PV*(1 + R)^N; print"FV =$",FV
FV =$ 10865.05
Guest answer is correct if assumed interest is compounded annually.....this is some important info you left off of your question....
compounded : annually? Monthly? Quarterly?......
