Answer:
$24498.5
Explanation:
A = Pe^rt ..... 1
Where :
A is the future value
P is the principal
r is the interest rate
t is the time
Given
P = $3,000
r = 10.5% = 0.105
time = 20years
Substitute the above values into equation 1
A = Pe^rt
A = $3,000e^0.105×20
A = 3000e^2.1
A = $24498.5097
A = $24498.5
At the end of the 20th year, he must have accumulated the sum of $24498.5
