Hansen opened a savings account and deposited 700.00. The account earns 9% interest, compounded monthly. 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 : 916.05

Pasos de solución

Translate the problem into an equation:

A = 700 (1 + \frac{0.09}{12})^{12 \cdot 3}

700 (1 + \frac{0.09}{12})^{12 \cdot 3} = 916.05175 \dots

Round to the nearest hundredth:

916.05

Amount : 916.05

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