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The Hendersons are saving up to go on a family vacation in 2 years. They invest \$3100 into an account with an annual interest rate of 1.13 % compounded annually. Assuming no withdrawals are made, how much money is in the Hendersons' account after 2 years?

Solution

The Hendersons are saving up to go on a family vacation in 2 years. They invest $3100 into an account with an annual interest rate of 1.13 % compounded annually. Assuming no withdrawals are made, how much money is in the Hendersons' account after 2 years?

Solution

Amount : 3170.46

Solution steps

Translate the problem into an equation:

A = 3100 (1 + \frac{0.0113}{1})^{1 \cdot 2}

3100 (1 + \frac{0.0113}{1})^{1 \cdot 2} = 3170.455839

Round to the nearest hundredth:

3170.46

Amount : 3170.46

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