You deposit $1000 each year into an account earning 3% interest compounded annually. How much will you have in the account in 35 years?

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To determine how much you will have in the account after 35 years, we can use the formula for the future value of a series of equal annual deposits with compound interest:

\[
A = P \times \frac{(1 + r)^t - 1}{r}
\]

Where:
- $A$ is the future value of the annuity (total amount in the account after 35 years),
- $P$ is the annual deposit ($1000),
- $r$ is the annual interest rate (3% = 0.03),
- $t$ is the number of years (35 years).

Let me calculate the amount for you.After 35 years, you will have approximately $60,462.08 in the account.

Would you like further details or clarifications?

Here are 5 related questions to explore:
1. How would the amount change if the interest rate were 5%?
2. What if you deposited $1500 annually instead of $1000?
3. How much total interest would you earn over the 35 years?
4. How does compound interest differ from simple interest in this scenario?
5. What would happen if the interest were compounded monthly instead of annually?

**Tip:** The longer the time horizon and the higher the interest rate, the greater the effect of compound interest!

You deposit $1000 each year into an account earning 3% interest compounded annually. How much will you have in the account in 35 years?

Learn how to calculate the future value of $1000 deposited annually into an account earning 3% compound interest for 35 years. This problem applies key concepts from finance and algebra, including the compound interest formula, and is suitable for students in Grades 10-12.

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