Answer :

For this problem, we are told that a deposit is made into an account that earns 4% interest annually. We need to determine the amount the account will have in 20 years.

To solve this problem, we need to apply the following expression:

[tex]A=P(1+r)^t[/tex]

Where A is the final amount, P is the invested principal, r is the annual interest rate and t is the number of years.

[tex]\begin{gathered} A=600\cdot(1+0.04)^{20}\\ \\ A=600\cdot(1.04)^{20}\\ \\ A=600\cdot2.191123\\ \\ A=1314.6738 \end{gathered}[/tex]

The account will have approximately $1314.67 in 20 years.

Other Questions