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How much would you expect to have in 35 years (s) assuming you deposited $90,470 in an investment that will earn 8%. Round the answer to the nearest penny.

User Faire
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Final answer:

You use the compound interest formula A = P(1 + r)^t to calculate the amount after 35 years of an initial $90,470 investment at an 8% annual interest rate.

Step-by-step explanation:

To calculate how much you would expect to have in 35 years after depositing $90,470 in an investment that earns 8% annually, you use the formula for compound interest. The formula to use is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.

Assuming the interest is compounded once a year (annually), the formula simplifies to A = P(1 + r)^t. Plugging in the values, we get A = $90,470(1 + 0.08)^35. After calculating this, you will find the expected amount after 35 years, rounded to the nearest penny.

User Mark Meuer
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