Javier and Celine deposit 800.00 into a savings account which earns 8% interest compounded annually. 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

Solution

Amount : 933.12

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.08}{1})^{1 \cdot 2}

800 (1 + \frac{0.08}{1})^{1 \cdot 2} = 933.12

Amount : 933.12

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