Jana just received a graduation gift of $60615 from her parents. She decides to deposit it into an account that pays a guaranteed 5% per year, compounded annually. How much will she have in the account when she retires in 25 years?

Question

mathmale · Answer

Wow.  Could you introduce me to Jana's parents?  I'd like to receive $60,615 also.

The formula for Amount when Interest is Compounded n Times Per Year is:

$$A=P(1+\frac{ r }{ n })^{nt}$$

mathmale · Answer

... where P is the original amount (principal), r is the annual interest rate, n is the number of times interest is paid per ear, and t is the number of years.

Can you, R-S, take the ball and run with it?