Question

You deposited $3,000 in the bank in 2019. It is compounded annually at 4%. How much money will you have in 9 years (in 2028)?

Answer 1

`\begin{equation*} \$4,269.94 \end{equation*}`

Step-by-step explanation

To find the amount of money that you will have in 9 years, apply the formula for annually compounded amount:

`A=P(1+r)^t`

where P = principal

r = interest rate

t = number of years

Hence, the amount after 9 years is:

`\begin{gathered} A=3000(1+(4)/(100))^9 \\ A=3000(1+0.04)^9=3000(1.04)^9 \\ A=\$4,269.94 \end{gathered}`

That is the answer.