Question

If an 18 year old has $10,000 and that person puts that money into a savings plan that pays an annual interest rate of 5%, according to our textbook, at age 65 that $10,000 will have grown to _____.

Answer 1

The amount at the age of 65 years will be $99059.71

Step-by-step explanation:

We have given principle amount P = $10000

Rate of interest r = 5% = 0.05

Time t = 65 - 18 = 47 years

So time period n = 47

We have to find the amount after 47 years

Future value is given by

`A=P(1+(r)/(100))^n`

`A=10000(1+(5)/(100))^(47)=$99059.71`

So the amount at the age of 65 years will be $99059.71