Answer :
Answer:
Total amount after 45 years will be equal to $12+0147.1
Explanation:
We have given initial amount, that is principal value P = $60000
Expected rate of return r = 7 %
Time period n = 45 years
We have to find the amount after 45 years , that is future value
Future value is given by
[tex]A=P(1+\frac{r}{100})^n[/tex], here A is future value P is present value r is rate of interest and n is time period
So [tex]A=60000\times (1+\frac{7}{100})^{45}[/tex]
[tex]A=60000\times 1.07^{45}[/tex]
[tex]A=60000\times21=1260147.1[/tex] $
So total amount after 45 years will be equal to $12+0147.1