Lin is saving $300 per year in an account that pays 4.5% interest per year, compounded annually. how do i find the value after 20 years?

The value after 20 years is $ 723.514

Solution:

Formula for Amount compounded annually is as follows:

Where,

"A" is the total amount

"p" is the principal sum

"r" is the rate of interest

"n" is the number of years

From given question,

p = $ 300

r = 4.5 %

n = 20 years

Substituting the values we get,

Thus value after 20 years is $ 723.514