The answer is $30,740.
Given,
The time period for which money is invested = N = 20
Interest Rate at which money is invested = i = 4.20%
Periodic Payment per period = PMT = 0
Present value of the money invested = PV = $13,500
Future value = FV
Since the formula for FV is:
FV = (PV) × (1+i)^N
Now substituting the given values in the above formula of future value we get,
= ($13,500) × (1+0.042)^20
= ($13,500) × (1.042)^20
= $13,500 × 2.2769546
= $30,738.88766
= $30,740 (After approximation to the nearest tens)
Hence, future value at the end of twenty years, if it is invested in an account paying 4.20% interest (annual compounding), is $30,740
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