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You choose to invest your $3,110 income tax refund check (rather than spend it!) in an account earning 5% compounded annually. How much will the account be worth in 30 years? (Use the Table provided.)

To solve this, we will use the formula for the future value of an investment compounded annually, which is:

\[
\text{Future Value} = \text{Present Value} \times \text{FVIF}(i, n)
\]

Where:
- Present Value = $3,110 (your initial investment)
- $i$ = 5% (the annual interest rate)
- $n$ = 30 years (the number of periods)

From the table, we look for the Future Value Interest Factor (FVIF) at 5% for 30 periods. According to the image:

\[
\text{FVIF}(5\%, 30) = 4.3219
\]

Now, calculate the future value:

\[
\text{Future Value} = 3,110 \times 4.3219 = 13,448.10
\]

So, the account will be worth **$13,448.10** in 30 years.

Would you like a further breakdown of this calculation or have any other questions? 

Here are five related questions you might consider:
1. What if the interest rate were 6% instead of 5%?
2. How does the future value change if the investment period is 20 years instead of 30?
3. How would compounding quarterly affect the future value?
4. How much would you need to invest today to reach $20,000 in 30 years at 5% interest?
5. What if the interest rate were compounded continuously instead of annually?

**Tip:** Compounding frequency greatly impacts the future value—more frequent compounding leads to higher returns.

You choose to invest your $3,110 income tax refund check in an account earning 5% compounded annually. How much will the account be worth in 30 years?

Learn how to calculate the future value of a $3,110 investment earning 5% compound interest over 30 years. This example explains compound interest, future value factors, and how small investments grow over time with an annual interest rate of 5%. Suitable for high school students and financial learners.

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