Ruben opened a savings account and deposited 200.00. The account earns 7% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 2 years, how much money will he have

Solution

Solution

Amount : 229.96

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.07}{12})^{12 \cdot 2}

200 (1 + \frac{0.07}{12})^{12 \cdot 2} = 229.96120 \dots

Round to the nearest hundredth:

229.96

Amount : 229.96

Popular Examples

a basketball set that sold for \$79 is discounted 15% what is the sale price?Dylan has a loyalty card good for a 20% discount at his local pharmacy. What would his total in dollars and cents be, after the discount and before tax, if the total cost of all the items he wants to buy is 30.70? Round to the nearest cent.Francesco invested a principal amount of 3736.00 with a rate of 5% that compounds continuously.It has been accruing interest for 77 years.What total value does Francesco now have?how long does it take a principal of 25 000 pesos at a simple interest rate of 5 percent to become 30 000 pesos At present, Deborah's father is 39 years older than Deborah. 6 years ago, her father was 4 times as old as her. Solve for y, Deborah's current age.