Bank B offers 3% interest compounded annually. How much would Tyler’s mom’s investment be worth after 30 years in this account? Show your calculations below.
To calculate the worth of the investment after 30 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the initial principal (the investment amount)
r is the annual interest rate (in decimal form)
n is the number of times the interest is compounded per year
t is the number of years
In this case, the initial principal is not given. Without that information, we cannot calculate the final amount.