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advanced-math$50,000 in a retirement account earns 6% annually. Assuming no additional deposits, what will it be worth in 30 years?
A
$287,174.56
B
$200,000.00
C
$150,000.00
D
$300,000.00
Correct Answer: A
Choice A is the correct answer. Calculate long-term growth.
- Formula: .
- Calculate: , so .
- Rule of 72: Doubling time ≈ years. In 30 years ≈ 2.5 doublings → ✓.
💡 Strategic Tip: Long-term exponential growth can produce dramatic results.
Choice B is incorrect because this only quadruples the principal. Choice C is incorrect because this only triples the principal. Choice D is incorrect because the calculation doesn't match.