If Millie invests $3,000 today in her retirement account at a 6% annual return, how much will she have after 5 years?

To determine how much Millie will have after 5 years when investing $3,000 at a 6% annual return, we can use the formula for compound interest, which is:

[ A = P(1 + r)^n ]

Where:

• ( A ) is the amount of money accumulated after n years, including interest.

• ( P ) is the principal amount (the initial amount of money).

• ( r ) is the annual interest rate (decimal).

• ( n ) is the number of years the money is invested or borrowed.

In Millie's case:

• ( P = 3,000 )

• ( r = 0.06 ) (which is 6% expressed as a decimal)

• ( n = 5 )

Substituting the values into the formula, we have:

[ A = 3,000(1 + 0.06)^5 ]

Calculating step-by-step:

1. Calculate ( (1 + 0.06) ), which equals 1.06.

2. Raise 1.06 to the power of 5, which gives approximately 1.338226.

3. Multiply by the principal amount:

[ A