A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Question

Quizplus · Accepted Answer

To solve this problem, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the ending amount, P is the starting amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years. Plugging in the given values, we get A = 3000(1 + 0.06/1)^(1x20) = $110,340. Therefore, the best choice is D.

A $3,000 Annual Contribution to a Retirement Account Earning 6