Question

you deposit $4000 each year into an account earning 3% interest compounded annually. How much will you have in the account and 35 years?

Answer 1

$ 241848.33

Explanation:

Given:

P = $4000

r = 3% = 3/100 = 0.03

n = 35 years

The formula for the future value is:

`\begin{gathered} FV=P\mleft((\left(1+r\right)^n-1)/(r)\mright) \\ \text{ replacing} \\ FV=4000\cdot\mleft((\mleft(1+0.03\mright)^(35)-1)/(0.03)\mright) \\ FV=241848.33 \end{gathered}`

Therefore, after 35 years, he would have $ 241848.33 in the account.