Final answer:
The formula to calculate the future value of an amount of money when it is put into an account and withdrawn after T years is Y = P(1 + r)^T, where Y is the future value, P is the present value, r is the interest rate, and T is the number of years.
Step-by-step explanation:
The formula to calculate the future value of an amount of money when it is put into an account and withdrawn after T years is:
Y = P(1 + r)^T
Where:
- Y is the future value (the amount you will have after T years)
- P is the present value (the amount you put into the account)
- r is the interest rate
- T is the number of years
For example, if you put $1000 into an account with an interest rate of 5% for 3 years, the future value would be:
Y = $1000(1 + 0.05)^3 = $1157.63