On May 25,1975 three pals graduated from high school,pooled together $1000 and put the money into an account promising to pay 8% for the next 30 years.On May 25,2005 they withdrew the money? To the nearest dollar,how much did they withdraw?
A)$2,400
B)$10,063
C)$32,400
D)None of the above are correct to the nearest dollar.

Question

Quizplus · Accepted Answer

To calculate the amount they would withdraw after 30 years with an interest rate of 8%, we can use the formula:

A = P(1 + r/100)^n

Where:
A = the amount after the specified time
P = the principal, or initial amount invested ($1000)
r = the annual interest rate (8%)
n = the number of years (30)

Plugging in the values, we get:

A = 1000(1 + 8/100)^30
A = 1000(1.08)^30
A ≈ $10,063.04

Rounded to the nearest dollar, the answer is B) $10,063.

On May 25,1975 Three Pals Graduated from High School,pooled Together