Zachary and Judith deposit 700.00 into a savings account which earns 11% 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

Solution

Amount : 862.47

Solution steps

Translate the problem into an equation:

A = 700 (1 + \frac{0.11}{1})^{1 \cdot 2}

700 (1 + \frac{0.11}{1})^{1 \cdot 2} = 862.47

Amount : 862.47

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