Today Dante and Sharon had their first child. All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their childs future. They are nervous about the stock market so theyve decided to put their money in a GIC which earns an interest rate of 3.2%, compounded monthly.

Sharon convinces Dante that because school is both very expensive and very important, they should consider an investment account with a higher rate of return. They explored their options and have selected a very conservative index mutual fund that has a performed with a return of 6.5%, compounded monthly.

How much will they have saved by their childs 18^thbirthday with this higher rate of return? [1]

How much interest will be earned? [2]