If I left $2700 in a variable rate interest account in 1986, how much is it worth today ?
$182,083.43
Of course
To calculate the worth of $2700 in a variable rate interest account since 1986, we need to know the interest rate for each year. Unfortunately, variable rate interest accounts can change over time, so without this information, we can't give you an exact value. However, we can make an estimate based on some assumptions.
To get an approximate value, let's assume an average annual interest rate of 5% over the past 35 years. Keep in mind that this is just an example and may not reflect the actual rates during that time period.
To calculate the value today, we need to account for the compounding effect of interest over the years. The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
Considering that the interest is compounded annually, we can substitute the values into the formula:
A = 2700(1 + 0.05/1)^(1*35)
A = 2700(1.05)^35
Using a calculator, the approximate value would be:
A = $12,193.95
So, assuming an average annual interest rate of 5%, your initial $2700 investment could be worth around $12,193.95 today. However, keep in mind that this is just an estimate, and the actual value would depend on the specific interest rates and compounding periods over the years.