If you deposit ?$3,600 today into an account earning an annual rate of return of 11 ?percent, what would your account be worth in 35 years? (assuming no further? deposits)? In 40 ?years? a

Finance Nov 29, 2020

If you deposit ?$3,600 today into an account earning an annual rate of return of 11 ?percent, what would your account be worth in 35 years? (assuming no further? deposits)? In 40 ?years?

a. If you deposit ?$3,600 today into an account earning an annual rate of return of 11 ?percent, what would your account be worth in 35 ?years?

Expert Solution

Computation of Amount in 35 years:

Amount = Principal*(1+Rate)^Time

= $3,600*(1+11%)^35

Amount = $138,869.46

Computation of Amount in 40 years:?

Amount = Principal*(1+Rate)^Time

= $3,600*(1+11%)^40

Amount = $234,003.12

So,

Your account would be worth $138,869.46 in 35 years?.

Your account would be worth $234,003.12 in 40 years?.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote