Questions: A=40,000(1+0.04/1)^(1+2)

Solution Steps

To solve the given expression, we need to evaluate the mathematical formula provided. The formula appears to be a compound interest formula where \( A \) is the amount after interest, the principal is 40,000, the interest rate is 4% (0.04), compounded annually (1 time per year), and the time period is 3 years (1+2). We will substitute these values into the formula and compute the result.

The problem involves calculating the future value of an investment using the compound interest formula: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] where:

• \( P = 40,000 \) is the principal amount,
• \( r = 0.04 \) is the annual interest rate,
• \( n = 1 \) is the number of times interest is compounded per year,
• \( t = 3 \) is the total time in years.

Substitute the given values into the compound interest formula: \[ A = 40,000 \left(1 + \frac{0.04}{1}\right)^{1 \times 3} \]

Simplify the expression inside the parentheses: \[ A = 40,000 \left(1 + 0.04\right)^3 = 40,000 \times 1.04^3 \]

Calculate \( 1.04^3 \) and then multiply by 40,000: \[ 1.04^3 \approx 1.124864 \] \[ A = 40,000 \times 1.124864 \approx 44,994.56 \]

Final Answer