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Your parents started a CD for you the year you were born. They decided not to tell you and give you this money for a down payment on your first house. After 30 years, you are ready to buy a house. Use the calculator to determine how much money you will be given and the interest you have earned after all this time.

User Naomy
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Based on an online finance calculator, the amount that you will be given after 30 years (future value) is $13,784.38 with the interest earned as $11,384.38.

N (# of periods) = 30 years

I/Y (Interest per year) = 6%

PV (Present Value) = $2,400

PMT (Periodic Payment) = $0

Results:

FV = $13,784.38

Total Interest = $11,384.38

Thus, the future value of the $2,400 CD after 30 years at 6% per annum is $13,784.38.

Complete Question:

Your parents started a $2,400 CD for you the year you were born. They decided not to tell you and give you this money for a down payment on your first house. After 30 years, you are ready to buy a house. Use the calculator to determine how much money you will be given and the interest you have earned at 6% per annum after all this time.

User Satyendra Kumar
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