Hello, agooolka!

I have a grandson who is just about to be born. He will be here by January 1.

Question #1

What if you were to put $25.00 into a savings account for him every month

for 15 years with interest compounded monthly.

At the end of 15 years, you put the total investment value into a savings account

with no further deposits but compounded monthly.

Assume the best you can get is 5% interest.

What would he have when he turns 66?

The first part is an.annuity

The formula is: .

. . where: .

We have: .

Hence: .

When your grandson is 15, you will have $12,682.22.

You place this is an account paying 5% per year compounded monthly.

The compound interest formula is: .

. . where: .

We have: .

Hence: .

At age 66, your grandson will have $161,564.30.