In 2 years, Victoria wants to buy a bicycle that costs 700.00. If she opens a savings account that earns 10% interest compounded annually, how much will she have to deposit as principal to have enough money in 2 years to buy the bike?

Solución

Solución

Principal : 578.51

Pasos de solución

Translate the problem into an equation:

700 = P (1 + \frac{0.1}{1})^{1 \cdot 2}

Resolver para

P, 700 = P (1 + \frac{0.1}{1})^{1 \cdot 2} : P = 578.51

Principal : 578.51

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