Joe and Beth deposit 4,187.00 into a savings account which earns 12.89% interest compounded monthly. 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?

Solución

Joe and Beth deposit 4, 187.00 into a savings account which earns 12.89% interest compounded monthly. 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?

Solución

Amount : 6151.05

Pasos de solución

Translate the problem into an equation:

A = 4187 (1 + \frac{0.1289}{12})^{12 \cdot 3}

4187 (1 + \frac{0.1289}{12})^{12 \cdot 3} = 6151.04717 \dots

Round to the nearest hundredth:

6151.05

Amount : 6151.05

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