Question

You deposit $5000 each year into an account earning 8% interest compounded annually. How much will you have in the account in 30 years?

Answer 1

Answer:

50313.28

Step-by-step explanation:

A = total amount  

P = principal or amount of money deposited,

r = annual interest rate  

n = number of times compounded per year

t = time in years

For the formula:

A=P(1+r/n)n⋅t

P=$5000 , r=8% , n=1 and t=30 years

Solution:

A= 5000(1+0.08/1) to the power 1.30

  = 5000*1.08 to the power 30

  = 5000*10.062657

  = 50313.28