Hansen and Kari deposit 1,000.00 into a savings account which earns 14% interest compounded annually. 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?

Solution

Hansen and Kari deposit 1, 000.00 into a savings account which earns 14% interest compounded annually. 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?

Solution

Amount : 1299.6

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.14}{1})^{1 \cdot 2}

1000 (1 + \frac{0.14}{1})^{1 \cdot 2} = 1299.6

Amount : 1299.6

Popular Examples

Aaliyah puts 400.00 into an account to use for school expenses. The account earns 15% interest, compounded monthly. How much will be in the account after 7 years?You randomly select one card from a 52-card deck. Find the probability of selecting a red eight or a black nine.Seven plus a number is forty.Suppose that 12,000is deposited for seven years at 4% APR. Calculate the interest earned if interest is compounded monthly. Round your answer to the nearest cent.tim has five apples he gave three to amelia how many apples does time have now