Joe and Ashley deposit 800.00 into a savings account which earns 2% interest compounded annually. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?

Solución

Solución

Amount : 848.97

Pasos de solución

Translate the problem into an equation:

A = 800 (1 + \frac{0.02}{1})^{1 \cdot 3}

800 (1 + \frac{0.02}{1})^{1 \cdot 3} = 848.9664

Round to the nearest hundredth:

848.97

Amount : 848.97

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