Ken opened a savings account and deposited 100.00. The account earns 15% interest, compounded annually. 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 : 152.09

Pasos de solución

Translate the problem into an equation:

A = 100 (1 + \frac{0.15}{1})^{1 \cdot 3}

100 (1 + \frac{0.15}{1})^{1 \cdot 3} = 152.0875

Round to the nearest hundredth:

152.09

Amount : 152.09

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