Cody and Riley deposit 500.00 into a savings account which earns 14% interest compounded annually. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?

Solution

Solution

Amount : 740.772

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.14}{1})^{1 \cdot 3}

500 (1 + \frac{0.14}{1})^{1 \cdot 3} = 740.772

Amount : 740.772

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