Question

If you deposit $86,601 in an account that earns 4% per year, compounded annually. What would be the balance in the account at the end of 32 years?

Answer 1

Answer:

$303,801.3955

Explanation:

The formula for calculating the total amount at the end of 32 years using the compounding interest is mentioned as follows:

Future value=P(1+i)^n

Where in given question

Future value=?

P=amount deposited today=$86,601

Interest rate=4%

n=number of years involved=32

Future value=86,601(1+4%)^32=$303,801.3955