Answer:
[tex]\$16,610.27[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=20\ years\\A=\$30,000\\ r=0.03\\n=1[/tex]
substitute in the formula above
[tex]30,000=P(1+\frac{0.03}{1})^{1*20}[/tex]
[tex]30,000=P(1.03)^{20}[/tex]
[tex]P=30,000/(1.03)^{20}[/tex]
[tex]P=\$16,610.27[/tex]
