Ruben opened a savings account and deposited 200.00. The account earns 7% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 2 years, how much money will he have

Solución

Solución

Amount : 229.96

Pasos de solución

Translate the problem into an equation:

A = 200 (1 + \frac{0.07}{12})^{12 \cdot 2}

200 (1 + \frac{0.07}{12})^{12 \cdot 2} = 229.96120 \dots

Round to the nearest hundredth:

229.96

Amount : 229.96

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