contestada

Eliana opened a savings account and deposited $300.00. The account earns 13% interest, compounded annually. 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?

Respuesta :

mhanifa

Answer:

  • $432.87

Step-by-step explanation:

Use below compound interest formula and the given data.

  • [tex]F = P*(1 + r)^{nt}[/tex]

F- future amount, P- invested amount, r - interest rate, n - number of compounds, t- time

Given:

  • P = $300
  • r = 13% or 0.13
  • t = 3 years
  • n = 1

Find the amount after 3 years:

  • [tex]F = 300(1 + 0.13)^3 = 432.87[/tex]

Otras preguntas