Answer:
$43,625
Step-by-step explanation:
Hello,
The question is a direct application of compound interest and we'll approach this question using the formula of compound interest.
A = P(1 + r/n)^nt
A = compound interest
P = principal
r = rate of the interest
n = number of times compounded
t = time interval for the money to be compounded.
Data;
A = ?
P = $2,500
r = 10% = 0.1
n = 1 (since it's compounded annually)
T = 30 years
A = 2,500 [1 + (0.1 / 1)]^(1 × 30)
A = 2,500 × [1 + 0.1]³⁰
A = 2,500 × 1.1³⁰
A = 2,500 × 17.45
A = $43,625
In 30 years, Jenna would've saved $43,625
