Question

Jack is investing $3,000 into an account

with an annual compound interest rate of
3% for 30 years. Jack will not make any
| additional deposits or withdrawals. How
X much interest will he have earned at the end X
of the 30 years?
Round your answer to the closest dollar
amount.

Answer 1

Explanation:

I think this is the equation for annual compunt interest

FV = PV(1 + int)^time PV is present value FV is the future value

PV + Interest = FV

FV - PV = Interest

FV - PV

Interest = [3000(1 + 0.03)^30] - 3000

= 3000(1.03)^30 - 3000

= 3000(2.4272) - 3000

= 7281.79 - 3000

= $4282 to the nearest dollar <------------ Fianl Answer