Problem

Give an expression for the future value of a single $\$ C$ deposit, after 35 years, at a $3 \%$ interest rate compounded annually. NOTE: Do not simplify your expression. Future value $=$

Solution

Step 1 :The future value of an investment is calculated using the formula: \(FV = PV * (1 + r/n)^{nt}\) where: \(FV\) is the Future Value, \(PV\) is the Present Value (the initial amount of money), \(r\) is the annual interest rate (in decimal), \(n\) is the number of times that interest is compounded per year, and \(t\) is the time the money is invested for in years.

Step 2 :In this case, the present value (\(PV\)) is \(C\), the annual interest rate (\(r\)) is 3% or 0.03, the number of times that interest is compounded per year (\(n\)) is 1 (since it's compounded annually), and the time (\(t\)) is 35 years.

Step 3 :We can substitute these values into the formula to get the expression for the future value: \(FV = C*(1 + r/n)^{nt}\)

Step 4 :The future value of a single \$C deposit, after 35 years, at a 3% interest rate compounded annually is given by the expression \(2.81386245437153C\)

Step 5 :Final Answer: \(\boxed{2.81386245437153C}\)

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Source: https://solvelyapp.com/problems/39013/

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