Lara opened a savings account and deposited 300.00. The account earns 10% interest, compounded monthly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?

Solution

Solution

Amount : 404.45

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.1}{12})^{12 \cdot 3}

300 (1 + \frac{0.1}{12})^{12 \cdot 3} = 404.45455 \dots

Round to the nearest hundredth:

404.45

Amount : 404.45

Popular Examples

any number added to six and then times by three A positive integer is twice another. The sum of the reciprocals of the two positive integers is frac(3,22). Find the two integers.Four times the sum of a number and 3 is 2.the difference between four times a number and 13 is 55 the sum of twelve and a number is thirteen