Answer:
Therefore, the future value of $3,000 compounded annually at 6.5% for 13 years is approximately $5,996.15.
Explanation:
To calculate the future value of an investment compounded annually, we can use the formula:
Future Value = Principal Amount × (1 + Interest Rate)^Number of Periods
In this case, the principal amount is $3,000, the interest rate is 6.5% (or 0.065 as a decimal), and the number of periods is 13 years.
Plugging these values into the formula, we get:
Future Value = $3,000 × (1 + 0.065)^13
Calculating this expression, we find:
Future Value ≈ $3,000 × 1.998716
Future Value ≈ $5,996.15
Therefore, the future value of $3,000 compounded annually at 6.5% for 13 years is approximately $5,996.15.