How much money will be in the account when he retires in 23 years?

Question

Dusty won $125,000 on the Who Wants to be a Zillionaire? game show. He decides to place the money into an account that earns 6.25% interest compounded annually and plans not to use any of it until he retires.

1. Write an expression that represents how much money Dusty will have in t years.

2.How much money will be in the account when he retires in 23 years?

Answer 1

A(23) = 125000(1 + 0.0625)²³

Can you calculate and answer?