Popular >

Roy and Vicky deposit 2,000.00 into a savings account which earns 1% interest compounded monthly. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Solution

Roy and Vicky deposit 2, 000.00 into a savings account which earns 1% interest compounded monthly. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Solution

Amount : 2040.39

Solution steps

Translate the problem into an equation:

A = 2000 (1 + \frac{0.01}{12})^{12 \cdot 2}

2000 (1 + \frac{0.01}{12})^{12 \cdot 2} = 2040.38568 \dots

Round to the nearest hundredth:

2040.39

Amount : 2040.39

Popular Examples

Joe wants to buy a bond that will mature to 6000 in seven years. How much should he pay for the bond now if it earns interest at a rate of 2% per year, compounded continuously?the sum of a number and three less than the number is sixteen the sum of three consecutive odd integers is 153 The radius of a circle is 7 kilometers. What is the circle's circumference?Evelyn puts 500.00 into an account to use for school expenses. The account earns 12% interest, compounded monthly. How much will be in the account after 9 years?