Answer:
The amount in 20 years is $6,050.24
Step-by-step explanation:
Given the following information:
Principal (Present Value, or PV)= $3,100
Interest rate ( <em>r </em>)= 3.4% or 0.034
Number of compounding period (<em>n </em>)= 1 (annually)
Number of years ( <em>t </em>)= 20
We can use the Future Value formula to find out the value of $3,100 in 20 years:
FV = 3100(1.95169)
FV = $6,050.24
Therefore, the future value of the amount deposited is $6,050.24