Question

You deposit $3000 each year into an account earning 3% interest compunded annually. How much will you have in the account in 20 years?

Answer 1

Given, P = $3000

r = 3% interest compounded annually

t = 20 years

We know that in t years the amount will be =

Given, P = $3000 r = 3% interest compounded annually t = 20 years We know that in t years the amount will be = P(1 + r/100)(1 + t/100)^t - 1/(1 + r/100) - 1)/(1 + r/100) - 1 Then, in 20 years, the amount will be = $ [3000(1 + 3/100)(1 + 3/100)^20 - 1/(1 + 3/100) - 1] =$^[3090 * 1.03^20 - 1/0.03] approximately $83029.46 Therefore, i will have $83029.46 in the account in 20 years.

Then, in 20 years, the amount will be = $ $[3000(1+\frac{3}{100})\frac{(1+\frac{3}{100})^{20}-1}{(1+\frac{3}{100})-1}]$

= $ $[3090*\frac{1.03^{20}-1}{0.03}]$

$\approx$ $83029.46

Therefore, i will have $83029.46 in the account in 20 years.

Answer 2

You deposit $3000 each year into an account earning 3% interest compounded annually. How much will you have in the account in 15 years?