Tim and Haley deposit 3,052.00 into a savings account which earns 7% 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

T im an d H a l ey d e p os i t 3, 052.00 in t o a s a v in g s a cco u n t w hi c h e a r n s 7% in t eres t co m p o u n d e d m o n t h l 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 ?

Amount : 3509.21

Pasos de solución

Translate the problem into an equation:

A = 3052 (1 + \frac{0.07}{12})^{12 \cdot 2}

3052 (1 + \frac{0.07}{12})^{12 \cdot 2} = 3509.20796 \dots

Redondear al más cercano hundredth:

3509.21

Amount : 3509.21