6. Your bank of choice has an interest rate of \( 1.2 \% \) for a savings account. If you deposit \( \$ 13,000 \) into a new savings account, how much money will be in the account in 25 years?

To calculate the future value of your savings account, you can use the formula for compound interest: \[ A = P(1 + r/n)^{nt} \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (\$13,000). - \( r \) is the annual interest rate (decimal) (1.2% = 0.012). - \( n \) is the number of times that interest is compounded per year (let’s assume it’s compounded annually, so \( n = 1 \)). - \( t \) is the number of years the money is invested or borrowed (25 years). Plugging in the values: \[ A = 13000(1 + 0.012/1)^{1*25} = 13000(1 + 0.012)^{25} = 13000(1.012)^{25} \] Calculating \( (1.012)^{25} \) gives approximately 1.34885. So: \[ A \approx 13000 \times 1.34885 \approx 17535.05 \] Therefore, in 25 years, you will have approximately **$17,535.05** in your savings account. Now that's some sweet interest working for you!