question archive If you deposit ?$3,600 today into an account earning an annual rate of return of 12 ?percent, what would your account be worth in 25 years? (assuming no further? deposits)? In 30 ?years?
If you deposit ?$3,600 today into an account earning an annual rate of return of 12 ?percent, what would your account be worth in 25 years? (assuming no further? deposits)? In 30 ?years?
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If you deposit ?$3,600 today into an account earning an annual rate of return of 12 ?percent, what would your account be worth in 25 years? (assuming no further? deposits)? In 30 ?years?
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In 25 years
$61,200.23
In 30 years
$107,855.72
Step-by-step explanation
Future value = P(1 + r)t
Where
P is the original investment = $3600
r is the interest rate =12% = 0.12
t is time
In 25 years
Future value = $3600 (1 + 0.12)25
Future value = $3600 ?×? (1.12)25
Future value =$3600 ?×? 17.00006441
Future value =$61,200.23
In 30 years
Future value = $3600 (1 + 0.12)30
Future value = $3600 ?×? (1.12)30
Future value = $3600 ?×? 29.95992212
Future value = $107,855.72
