Answer:
$2,296,973.35
Step-by-step explanation:
This is a time value of money question
Since it's asking for the balance in 42 years, that's a time in the future and therefore you use a Future value formula.
Note: it is important to note that it's continuous compounding
FV = PV[tex]e^{rt}[/tex]
"e" in the formula is an exponential
PV= 47,000
r = 9.26% or 0.0926
t = 42 years
Therefore,
[tex]FV = 47,000e^{0.0926*42} \\ \\ FV =47,000 * 48.871773[/tex]
FV = 2,296,973.353
Therefore, the balance in the account will be $2,296,973.35
