400.00. The account earns 12% interest, compounded annually. If he wants to use the money to buy a new bicycle in 2 years, how much will he be able to spend on the bike?

Solution

Solution

Amount : 501.76

Solution steps

Translate the problem into an equation:

A = 400 (1 + \frac{0.12}{1})^{1 \cdot 2}

400 (1 + \frac{0.12}{1})^{1 \cdot 2} = 501.76

Amount : 501.76

Popular Examples

a pair of standard dice are rolled. find the probability of rolling sum of 2 with these dice.in a fun run sponsored by the local government, 35 percent discount is offered for a pair of pants. if the original price of the said item was 500 what is its price after the discount Find three consecutive even integers such that the square of the third is 4 more than the square of the second. The smallest integer is The middle integer is The largest integer is 5 years from now Paul will be twice as old as Jose.The current sum of the ages of Paul and Jose is 62.How old is Jose right now?Bill opened a savings account and deposited 800.00 as principal. The account earns 4% interest, compounded continuously. What is the balance after 4 years?