Algebra-1

Question Analysis
This question tests the student's ability to apply the compound interest formula to a real-world scenario involving a family's investment. The key is to correctly use the formula with annual compounding and a longer time period.

Key Concept Explanation
The compound interest formula is , where:
is the final amount,
is the initial principal,
is the annual interest rate (as a decimal),
is the number of times interest is compounded per year,
is the time the money is invested for, in years.

Step-by-step Solution
1. Identify the given values: , , , .
2. Substitute these values into the compound interest formula:

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