Question

You placed $9,358 in a savings account today that earns an annual interest rate of 9 percent compounded annually. How much you will have in this account at the end of 29 years? Assume that all interest received at the end of the year is reinvested the next year. Round the answer to two decimal places.

Answer 1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=$9358*(1.09)^29

=$9358*12.17218208

=$113,907.28(Approx).