Answer:
Your account is going to be worst $405,142.92
Step-by-step explanation:
This is a compound interest problem.
The compound interest formula is given by:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
So, for this problem:
We want to find A
[tex]P = 55,000[/tex]
[tex]n = 1[/tex]
[tex]r = 0.105[/tex]
[tex]t = 20[/tex]
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A = 55000(1 + \frac{0.105}{1})^{20}[/tex]
[tex]A = 405,142.92[/tex]
Your account is going to be worst $405,142.92
