Answer:
$72891.1094
Step-by-step explanation:
This method of saving is called sinking fund.
Future value (FV) = A*([tex]\frac{[(1+r)^{n} - 1]}{r}[/tex])
Where A is the amortization, r is the rate and n the number of years.
A = $3000
r = 2% = 0.02
n = 20
FV = 3000 * [tex](\frac{[(1.02)^{20} - 1]}{0.02})[/tex]
= 3000 * 24.2973698
= 72891.1094
FV = $ 72891.1094
The amount that would be in the account after 20 years is $72891.1094
