Brooke opened a savings account and deposited 700.00. The account earns 5% interest, compounded monthly. If she wants to use the money to buy a new bicycle in 2 years, how much will she be able to spend on the bike?

Solución

Solución

Amount : 773.46

Pasos de solución

Translate the problem into an equation:

A = 700 (1 + \frac{0.05}{12})^{12 \cdot 2}

700 (1 + \frac{0.05}{12})^{12 \cdot 2} = 773.45893 \dots

Round to the nearest hundredth:

773.46

Amount : 773.46

Ejemplos populares

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