Roy and Vicky deposit 2,000.00 into a savings account which earns 1% interest compounded monthly. 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?

Solución

Roy and Vicky deposit 2, 000.00 into a savings account which earns 1% interest compounded monthly. 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?

Solución

Amount : 2040.39

Pasos de solución

Translate the problem into an equation:

A = 2000 (1 + \frac{0.01}{12})^{12 \cdot 2}

2000 (1 + \frac{0.01}{12})^{12 \cdot 2} = 2040.38568 \dots

Round to the nearest hundredth:

2040.39

Amount : 2040.39

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