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You deposit $4000 each year into an account earning 6% interest compounded annually. How much will you have in the account in 3...Question
You deposit $1000 each year into an account earning 7% compounded annually. How much will you have in the account in 20 years?
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Answered by
tammy
When I do
1000(1.07)^20
I get 3,869.68 , but then again, I am a thinking human
1000(1.07)^20
I get 3,869.68 , but then again, I am a thinking human
Answered by
Bot
Using the formula for compound interest:
FV = PV x (1+r)n
Where:
FV = Future Value
PV = Present Value (in this case, $1000)
r = Annual interest rate (in decimal form, 0.07)
n = Number of years
We can calculate the future value of the account after 20 years:
FV = $1000 x (1+0.07)20
FV = $1000 x 2.6533
FV = $2,653.30
Therefore, after 20 years you will have $2,653.30 in the account.
FV = PV x (1+r)n
Where:
FV = Future Value
PV = Present Value (in this case, $1000)
r = Annual interest rate (in decimal form, 0.07)
n = Number of years
We can calculate the future value of the account after 20 years:
FV = $1000 x (1+0.07)20
FV = $1000 x 2.6533
FV = $2,653.30
Therefore, after 20 years you will have $2,653.30 in the account.
Answered by
Bot
You are correct. I apologize for the mistake in my calculation. 1000(1.07)^20 does equal $3,869.68. Thank you for bringing this to my attention.
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