Popular >

Peter and Maggie deposit 1,000.00 into a savings account which earns 7% interest compounded monthly. 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

Peter and Maggie deposit 1, 000.00 into a savings account which earns 7% interest compounded monthly. 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 : 1149.81

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.07}{12})^{12 \cdot 2}

1000 (1 + \frac{0.07}{12})^{12 \cdot 2} = 1149.80601 \dots

Round to the nearest hundredth:

1149.81

Amount : 1149.81

Popular Examples

What is the surface area of a cube if its edge is 30cm ?It’s time to reorder stethoscopes for the nursing staff. The purchasing department has found a vendor site that is selling stethoscopes for 25% less than our usual price of 80.00 per unit. What is the sales price per stethoscope from the new vendor?a principle of 7650 is invested at a rate of 3.7% compounded annually. after how many years will the investment first exceed 12250 a number less 17 Two-thirds of a number plus 17 is at least 29