Question

A young person decides to put aside some money for retirement by putting $1,000 in a 30-year savings bond that pays 3.0% simple interest per year. The interest compounds. How much money will the person have after 30 years?

Answer 1

2427.26 $

Explanation:

Just use this formula when you have such type of problems:

N = N° (1 + %)^t

Where N = final amount

N°= initial amount

t = peroid of time

Now let's solve:

N = 1000(1 + 0.03)^30

N = 2427.26