Michael opened a savings account and deposited 3,000.00. The account earns 1% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solución

Michael opened a savings account and deposited 3, 000.00. The account earns 1% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solución

Amount : 3091.32

Pasos de solución

Translate the problem into an equation:

A = 3000 (1 + \frac{0.01}{12})^{12 \cdot 3}

3000 (1 + \frac{0.01}{12})^{12 \cdot 3} = 3091.32498 \dots

Round to the nearest hundredth:

3091.32

Amount : 3091.32

Ejemplos populares

24 less than 4 times a number is 64 A circle has a diámetro of 20 cm. a. What part of the circle do you need to find in order to calculate the area inside the circle?Find the future value and interest earned if 8806.54 is invested for 8 years at 6% compounded semiannually five less than four times a number is equal to 19. find the number Martin is two years older than Reese, and the same age as Lee. If Lee is 12, how old is Reese?