Anne opened a savings account and deposited 300.00. The account earns 13% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 2 years, how much will she be able to spend on the bike?

Solución

Solución

Amount : 387.47

Pasos de solución

Translate the problem into an equation:

A = 300 (1 + \frac{0.13}{4})^{4 \cdot 2}

300 (1 + \frac{0.13}{4})^{4 \cdot 2} = 387.47326 \dots

Round to the nearest hundredth:

387.47

Amount : 387.47

Ejemplos populares

a number increased by 4 is equal to the quotient of the number and-15 john runs 15 miles in 3 hours how many miles can john run per hour Colette opened a savings account and deposited 400.00 as principal. The account earns 12% interest, compounded monthly. What is the balance after 2 years?Find the amount in the account for the given principal, interest rate, time, and compounding period.Pequals1, 900, requals3.5%, tequals5 years; compounded daily Caleb and Sidney deposit 1,000.00 into a savings account which earns 10% interest compounded annually. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?