Final answer:
The student's question is about a savings account that uses compound interest, demonstrating the impact of starting to save early and letting savings grow over time in Mathematics.
Step-by-step explanation:
The question posed by the student involves a savings account and the concept of compound interest, which falls under the subject of Mathematics, specifically financial mathematics or algebra. In the context of the student's homework, it's important to recognize that compound interest can have a significant impact when you start saving early in life. Compound interest refers to the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. This effect can cause wealth to grow exponentially over time, and the example provided shows that an initial savings of $3,000, with an annual interest rate of 7%, would grow to $44,923 over a span of 40 years without any additional contributions.
Understanding the principles of compound interest and the value of saving early can be of great benefit when planning one's financial future. It demonstrates the importance of long-term investment strategies and patience, as the power of compound growth helps savings multiply.