Question

Assume you deposit $5,700 at the end of each year into an account paying 11.25 percent interest. How much money will you have in the account in 19 years?

Answer 1

To calculate the amount of money you will have in the account after 19 years, you can use the formula for compound interest.

Step-by-step explanation:

To calculate the amount of money you will have in the account after 19 years, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
- A is the final amount
- P is the initial deposit
- r is the annual interest rate (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years

In this case, the initial deposit is $5,700, the annual interest rate is 11.25% (0.1125), interest is compounded once per year (n = 1), and the number of years is 19. Plugging in these values into the formula:

A = 5700(1 + 0.1125/1)^(1*19)

A = 5700(1.1125)^19

A ≈ $45,512.42