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Popular Word Problems >

Pedro and Shawna deposit 9,590.00 into a savings account which earns 12% interest compounded annually. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Solução

P e d ro an d S ha w na d e p os i t 9, 590.00 in t o a s a v in g s a cco u n t w hi c h e a r n s 12% in t eres t co m p o u n d e d ann u a ll y . T h ey w an t t o u se t h e m o n ey in t h e a cco u n t t o g o o n a t r i p in 2 ye a rs . Ho w m u c h w i ll t h ey b e ab l e t o s p e n d ?

Solução

Amount : 12029.696

Passos da solução

Translate the problem into an equation:

A = 9590 (1 + \frac{0.12}{1})^{1 \cdot 2}

9590 (1 + \frac{0.12}{1})^{1 \cdot 2} = 12029.696

Amount : 12029.696

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