Cash deposited = P = $500
Interest rate = r = 7% = 0.07
Compounding Frequency = n = 12
Time = t = 30 - 16 = 14 years
Amount accumulated = A = ?
Formula to be used:
[tex]A=P(1+ \frac{r}{n})^{nt} [/tex]
Using the values, we get:
[tex]A=500(1+ \frac{0.07}{12})^{12*14} =1328.44 [/tex]
This means, $1328.44 will be her balance at the age of 30.
