Question

Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays 6 percent annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much will be in the account when you retire?

Answer 1

Answer:

amount = $12985.48

Explanation:

given data

principal = $1000

RATE = 6 %   = 0.06

Time = 44 year

to find out

How much will be in the account when you retire

solution

we will apply here amount formula that is

amount = principal × $(1+r)^{t}$       ...................1

put here value we get

amount = 1000 × $(1+0.06)^{44}$  

amount = $12985.48