In this case, we'll have to carry out several steps to find the solution.
Step 01:
Data:
principal = $3000
rate (interest) = 4%
time = 25 years
Step 02:
compound interest:
A = P (1 + r/n) ^ nt
r = 4% = 4/100 = 0.04
t = 25
n = 1
[tex]A\text{ = 3000}\cdot\text{(1+ }\frac{0.04}{1})^{1\cdot25}[/tex][tex]A=3000(1+0.04)^{25}=3000(1.04)^{25}=3000(2.67)[/tex]A = 7997.51
The answer is:
You will have $ 7997.51
