The value after 20 years is $ 723.514
Solution:
Formula for Amount compounded annually is as follows:
[tex]\mathrm{A}=P\left(1+\frac{r}{100}\right)^{n}[/tex]
Where,
"A" is the total amount
"p" is the principal sum
"r" is the rate of interest
"n" is the number of years
From given question,
p = $ 300
r = 4.5 %
n = 20 years
Substituting the values we get,
[tex]\begin{aligned}&A=300\left(1+\frac{4.5}{100}\right)^{20}\\\\&A=300(1+0.045)^{20}\\\\&A=300(1.045)^{20}\\\\&A=300 \times 2.41171=723.514\end{aligned}[/tex]
Thus value after 20 years is $ 723.514
