Question

Dianna will invest $3,000 in an investment account for the next 30 years. The investment will earn 13 per cent annually. How much will she have at the end of 30 years? (Round to the nearest dollar.)

Answer 1

Answer:

$117,347.69

Explanation:

Assuming that Diana made only one $3,000 investment, in 30 years she will have:

future value = present value x (1 + interest rate)ⁿ

• present value = $3,000
• interest rate = 13%
• n = 30 years

future value = $3,000 x (1 + 0.13)³⁰ = $3,000 x 39.116 = $117,347.69