Question

You deposited $3,000 in the bank in 2019. It is compounded annually at 4%. How much money will you have in 9 years (in 2028)?

Answer 1

ANSWER

$\begin{equation*} \ 4,269.94 \end{equation*}$

EXPLANATION

To find the amount of money that you will have in 9 years, apply the formula for annually compounded amount:

$A=P(1+r)^t$

where P = principal

r = interest rate

t = number of years

Hence, the amount after 9 years is:

$\begin{gathered} A=3000(1+\frac{4}{100})^9 \\ A=3000(1+0.04)^9=3000(1.04)^9 \\ A=\ 4,269.94 \end{gathered}$

That is the answer.