Reggie opened a savings account and deposited 200.00. The account earns 10% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solución

Solución

Amount : 266.2

Pasos de solución

Translate the problem into an equation:

A = 200 (1 + \frac{0.1}{1})^{1 \cdot 3}

200 (1 + \frac{0.1}{1})^{1 \cdot 3} = 266.2

Amount : 266.2

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