. I have $2,000 that I can put away for my daughter’s college education. There is a savings program that it is offering 3.75% for 18 years. How much will she have for college
http://www.ehow.com/how_2301604_calculate-interest.html
Multiply $2,000*0.0375*18=$1,350
To calculate the amount your daughter will have for college after 18 years with a 3.75% interest rate, you can use the compound interest formula. The formula is:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (amount your daughter will have)
P = the principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, the principal amount (P) is $2,000, the interest rate (r) is 3.75% (or 0.0375 as a decimal), the number of times interest is compounded (n) per year is usually specified but let's assume it's compounded annually (n = 1), and the number of years (t) is 18.
By substituting the values in the formula, we can calculate the final amount (A):
A = 2000(1 + 0.0375/1)^(1*18)
A = 2000(1 + 0.0375)^18
A = 2000(1.0375)^18
A ≈ 2000(1.861)
A ≈ $3,722
Therefore, your daughter will have approximately $3,722 for college after 18 years with a 3.75% interest rate.