Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account?

For annual compounding, the accumulated value is given by A = P(1 + r)^t, so the present amount is P = A ÷ (1 + r)^t. Substitute A = $25,000, r = 0.0425, and t = 18: P = $25,000 ÷ (1.0425)^18 ≈ $11,820. Therefore, the account presently contains approximately $11,820, choice B.

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