Nancy opened a savings account and deposited 2,000.00. The account earns 1% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?

Solución

Nancy opened a savings account and deposited 2, 000.00. The account earns 1% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?

Solución

Amount : 2060.83

Pasos de solución

Translate the problem into an equation:

A = 2000 (1 + \frac{0.01}{4})^{4 \cdot 3}

2000 (1 + \frac{0.01}{4})^{4 \cdot 3} = 2060.83191 \dots

Round to the nearest hundredth:

2060.83

Amount : 2060.83

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