Question

Jake’s dad puts $300 in an investment for him when he was 2 year. The investment was getting a 9% return. How much money should he have now that he is 66 years old and looking to retire?

t=72/r
d=y/t
E=I*2d
t=8
64/8=8
300*2^8

Answer 1

Jake should have approximately $6,712.60 now that he is 66 years old and looking to retire.

Explanation:

To calculate the future value of an investment with compound interest, we can use the formula:

Future Value = Principal * (1 + Rate)^Time

Where:

Principal is the initial investment amount

Rate is the rate of return (expressed as a decimal)

Time is the number of years

In this case, Jake's principal is $300, the rate of return is 9% or 0.09, and the time is 66 - 2 = 64 years.

Plugging these values into the formula, we get:

Future Value = $300 * (1 + 0.09)^64

Calculating this equation, we find that Jake should have approximately $6,712.60 now that he is 66 years old and looking to retire.