You won 4 million. earning 13% interest a year compounded annually . To the nearest cent, how much money will you have after 28 years?

Question

You won 4 million. earning 13% interest a year

Answer 1

Principle x (1 + rate)^ time

 

 4 million x (1.13)^28   

 

Most importantly note that 13% = 0.13 as a pure decimal number. so 1 + rate = 1 + 13% = 1 + .13 = 1.13

 

122,533,943.01

 

Where you find account with 13% return?

Higher interest returns means risky investments..

proceed with caution  ;-)