
The interest rates used in Chapter 6 are mainly for illustrative purposes and do not necessarily reflect what is currently available in the U.S. marketplace. You can use an online resource, such as bankrate.com, to investigate current rates.
To find a balance compounded monthly using your calculator, apply the following steps for the formula
 Divide r by 12 and add 1.
 Raise to the nth power.
 Multiply by P.
 Round to the nearest cent.
On page 284, the formula for the account balance is for interest compounded monthly. The formula for quarterly compounding is
where n is the number of quarters the interest is compounded. (Note that 3 months = 1 quarter.) The formula for daily compounding is
where n is the number of days the interest is compounded. The formula for annual compounding is given in the Math Help for page 285.

If you have kids or plan to have kids in the future you might want to consider purchasing a 529 plan for your child's college expenses. The money you deposit into a 529 is exempt from federal taxes as long as it is used to pay for college expenses such as tuition, or room and board. To learn more about 529 plans, visit the Securities and Exchange Commission website.

 The balance on her 18th birthday is
 The balance on her 26th birthday is

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