Hunter opened a savings account and deposited 3,000.00. The account earns 5% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solution

Hunter opened a savings account and deposited 3, 000.00. The account earns 5% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solution

Amount : 3472.875

Solution steps

Translate the problem into an equation:

A = 3000 (1 + \frac{0.05}{1})^{1 \cdot 3}

3000 (1 + \frac{0.05}{1})^{1 \cdot 3} = 3472.875

Amount : 3472.875

Popular Examples

The sum of a number and 19 is equal to the number divided by −17 28 is twelve less than 4 times a number.Find the number Dan is twice as old as Bob. The sum of their ages seven years ago was 13. How old are they now The circumference of a circle is 2𝜋 inches. What is the radius The sum of 4 consecutive even integers is 44. What is the least of the 4 integers?