Ai Mi deposits $4,200 every year into an account earning an annual interest rate of 8.1% compounded annually. How much would she have in the account after 3 years, to the nearest dollar? Use the following formula to determine your answer. A=d(((1+i)^(n)-1)/(i)) A= the future value of the account after n periods d= the amount invested at the end of each period i= the interest rate per period n= the number of periods Answer:

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Ai Mi deposits  $4,200 every year into an account earning an annual interest rate of  8.1% compounded annually. How much would she have in the account after 3 years, to the nearest dollar? Use the following formula to determine your answer.  A=d(((1+i)^(n)-1)/(i))  A= the future value of the account after  n periods  d= the amount invested at the end of each period  i= the interest rate per period  n= the number of periods Answer:

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Identify variables: Identify the variables from the problem to use in the formula. We have: d = $4,200 (the amount invested at the end of each period) i = 8.1% or 0.081 (the interest rate per period) n = 3 (the number of periods)Convert interest rate: Convert the interest rate from a percentage to a decimal. i = 8.1% = 0.081Plug values into formula: Plug the values into the compound interest formula to calculate the future value of the account. A = d * (((1 + i)^n - 1) / i) A = 4200 * (((1 + 0.081)^3 - 1) / 0.081)Calculate inside parentheses: Calculate the value inside the parentheses. (1 + i)^n = (1 + 0.081)^3 = 1.081^3 = 1.259712161Subtract one: Continue the calculation by subtracting 1 from the result of Step 4. 1.259712161 - 1 = 0.259712161Divide by interest rate: Divide the result of Step 5 by the interest rate i. 0.259712161 / 0.081 = 3.208802975Multiply by amount: Multiply the result of Step 6 by the amount invested at the end of each period d. A = 4200 * 3.208802975 A = 13476.9737Round to nearest dollar: Round the result to the nearest dollar. A ≈ $13,477

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