If I put $300 in an account that earns 5.5%, how much will there be in the account at the end of 21 years?
Assuming the interest is compounded annually. You are finding the interest 21 times. There is a formula for it that you can certainly Google or you can just simply take the amount 300*(1.055)=SUM and do the same to the sum each time SUM*(1.055).
I believe its answer is 923.47... check me though
To calculate the amount in the account at the end of 21 years, you can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = The future value of the investment
P = The principal amount (initial deposit) ($300 in this case)
r = The annual interest rate (5.5% as a decimal, or 0.055)
n = The number of times that interest is compounded per year (typically, this will be specified by the bank)
t = The number of years (21 in this case)
The formula assumes that the interest is compounded annually, so for simplicity, we'll assume that interest is compounded once a year (n = 1).
Plugging in the values into the formula:
A = 300(1 + 0.055/1)^(1*21)
A = 300(1 + 0.055)^21
A ≈ 300(1.055)^21
A ≈ 300(2.978)^21
A ≈ 300 * 3.718634
A ≈ 1115.59
Therefore, at the end of 21 years, the account balance will be approximately $1115.59.