Suppose you deposit $2,096.00 into an account today that earns 10.00%. In 20.00 years the account will be worth $________.



The future value $ FV $ of an investment can be calculated using the formula for compound interest:

\[
FV = P(1 + r)^t
\]

Where:
- $ P $ is the initial deposit (or principal),
- $ r $ is the annual interest rate (expressed as a decimal),
- $ t $ is the number of years.

In this case:
- $ P = 2096 $,
- $ r = 0.10 $ (10% annual interest rate),
- $ t = 20 $.

Now, let's calculate the future value:

\[
FV = 2096(1 + 0.10)^{20}
\]

I'll compute this now.The account will be worth approximately \$14,100.84 in 20 years.

Would you like further details or have any questions? Here are some related questions:

1. How does changing the interest rate affect the future value of the investment?
2. What happens to the future value if you add more periodic contributions to the account?
3. How does compound interest differ from simple interest in this scenario?
4. How would the future value change if the interest compounds more frequently, say monthly?
5. What would the account balance be if the time period were longer, say 30 years?

**Tip:** The power of compound interest grows over time, so longer investment periods dramatically increase future values!

Suppose you deposit $2,096.00 into an account today that earns 10.00%. In 20.00 years the account will be worth $________.

Learn how to calculate the future value of a $2,096 investment at 10% interest compounded annually over 20 years. This problem uses the compound interest formula and explains exponential growth. Suitable for high school students (Grades 9-12).

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