Question

A student has inherited $50,000. If it is placed in asavings account that earns 3% interest, how much isin the account in 30 years

Answer 1

$121,363

Step-by-step explanation:

The amount in 30 years is known as the Future Value (FV) . We arrive at this figure by compounding the Present Value using the interest earned on the savings as follows :

PV = $50,000

P/yr = 1

N = 30

PMT = $ 0

i = 3 %

FV = ?

Using a Financial calculator to enter the amounts as shown above, the FV can be determined as $121,363