Alisa is investing $6,250 to get ready for college expenses. Her bank offers an annual rate of 6.12% per year and she plans to do this for 4 years. How much will she have saved after 4 years?​

Money Alisa is investing each year = $6250

Number of years for which Alisa will be investing = 4

Annual interest rate for the investment = 6.12

We know that :

In this case :

Principal = $6,250

Rate = 6.12%

Time = 4 years

Principal + interest = Amount = Money Alisa would have saved at the end of 4 years

Money Alisa would have saved at the end of 4 years :

Therefore, money Alisa would have saved after 4 years = $31,120

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