Question

If you deposited $10,000 in to a bank savings account on your 18th birthday....Said account yielded 3% compounded a nnually, how much money would be in your account on your 58th birthday?

Answer 1

$32600

Explanation:

Given data

Principal= $10000

Rate= 3%

Time= 58-18= 40 years

The compound interest expression is

A=P(1+r)^t

Substitute

A=10000(1+0.03)^40

A=10000(1.03)^40

A=10000*3.26

A=$32600

Hence the amount at the 58th birthda is $32600