If you deposit 

​$2 comma 6002,600 

today into an account earning an annual rate of return of 

99 

​percent, what will your account be worth in 

3030 

years​ (assuming no further​ deposits)? In 

4040 

​years?  

Question content area bottom

Part 1

Click on the table icon to view the FVIF​ table: 

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.

In 

3030 

​years, your account will be worth 

​$enter your response here. 

** ​(Round to the nearest​ cent.)

Part 2

In 

4040 

​years, your account will be worth 

​$enter your response here. 

 ​(Round to the nearest​ cent.)

To solve this, we will use the formula for **future value** based on compound interest. The formula is:

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

Where:
- $FV$ is the future value of the investment.
- $PV$ is the present value (initial deposit).
- $r$ is the annual interest rate (expressed as a decimal).
- $t$ is the time the money is invested or will grow (in years).

### Given:
- $PV = 2,600$ (initial deposit)
- $r = 99\%$ (or 0.99 as a decimal)
- Time $t$ is 30 years for Part 1 and 40 years for Part 2.

#### Part 1: Future Value in 30 years
For $ t = 30 $:
\[
FV = 2,600 \times (1 + 0.99)^{30}
\]

#### Part 2: Future Value in 40 years
For $ t = 40 $:
\[
FV = 2,600 \times (1 + 0.99)^{40}
\]

I will now calculate the results for both parts.### Part 1:
In 30 years, your account will be worth **\$2,401,959,278,074.85** (rounded to the nearest cent).

### Part 2:
In 40 years, your account will be worth **\$2,339,356,469,599,484.00** (rounded to the nearest cent).

These large numbers result from the extremely high annual interest rate of 99%, which leads to exponential growth over time.

Do you want any more details or have further questions?

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Here are 5 related questions to expand on this:

1. How does the future value change if the interest rate is lower (e.g., 10%)?
2. What if the deposit is made monthly instead of as a lump sum?
3. How would the future value be affected if interest compounds quarterly?
4. What would be the result after

If you deposit $2,600 today into an account earning an annual rate of return of 99 percent, what will your account be worth in 30 years? In 40 years? (assuming no further deposits) In 30 years, your account will be worth $enter your response here. (Round to the nearest cent.) In 40 years, your account will be worth $enter your response here. (Round to the nearest cent.)

Learn how to calculate the future value of a $2,600 deposit earning 99% annual interest over 30 and 40 years. This example covers key financial concepts, including compound interest and exponential growth, providing detailed solutions to demonstrate how investments grow over time. Suitable for high school and college-level finance students.

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