The Kwans are saving for their daughterÍs college education. If they deposit $12,000 in an account bearing 6.4% interest compounded continuously, how much will be in the account when Ann goes to college in 12 years?

Principal amount (P) = $12000

Rate of interest (I) = 6.4%

Time of deposit = 12 years

Let us assume the final amount to be = A

Then

A = P (1+r) ^ t

= 12000 (1 + 0.064) ^12

= 12000 (1.064) ^12

= 12000 * 2.105

= 25260 dollars

From the above deduction, it can be concluded that the account will have $25260, when Ann goes to college in 12 years.