Answer:
Derrick receive $11268.25 from his grandparents on his 18th birthday
Step-by-step explanation:
We are given Derrick turned 15, his grandparents put $10,000 into an account that yielded 4% interest, compounded quarterly.
When Derrick turns 18, his grandparents will give him the money to use toward his college education.
Principal = $ 10000
Time = 18-15 = 3 years
Rate of interest = [tex]4\% = 0.04[/tex]
No. of compounds per year = 4
[tex]Amount = P(1+\frac{r}{n})^{nt}\\Amount=10000(1+\frac{0.04}{4})^{4 \times 3}\\Amount =11268.25[/tex]
Hence Derrick receive $11268.25 from his grandparents on his 18th birthday
