Question

You deposit $600 in an account earning 4% interest compounded annually. How much will you have in the account in 20 years?

Answer 1

Explanation:

You deposit $600 in an account earning 4% interest compounded annually. How much will you have in the account in 10 years?

Answer 2

For this problem, we are told that a deposit is made into an account that earns 4% interest annually. We need to determine the amount the account will have in 20 years.

To solve this problem, we need to apply the following expression:

`A=P(1+r)^t`

Where A is the final amount, P is the invested principal, r is the annual interest rate and t is the number of years.

`\begin{gathered} A=600\cdot(1+0.04)^(20)\\ \\ A=600\cdot(1.04)^(20)\\ \\ A=600\cdot2.191123\\ \\ A=1314.6738 \end{gathered}`

The account will have approximately $1314.67 in 20 years.