Question

You deposit 3100 in an account with an annual interest of 3.4% for 20 years

Answer 1

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 ( r )= 3.4% or 0.034

Number of compounding period (n )= 1 (annually)

Number of years ( t )= 20

We can use the Future Value formula to find out the value of $3,100 in 20 years:

$FV = PV(1 + \frac{r}{n})^{nt}$

$FV = 3100(1 + \frac{0.034}{1})^{1*20}$

$FV = 3100(1.034)^{20}$

FV = 3100(1.95169)

FV = $6,050.24

Therefore, the future value of the amount deposited is $6,050.24