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Scott and Adele deposit 1,000.00 into a savings account which earns 9% interest compounded monthly. 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?Round your answer to the nearest cent.

Solution

Scott and Adele deposit 1, 000.00 into a savings account which earns 9% interest compounded monthly. 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?Round your answer to the nearest cent.

Solution

Amount : 1308.65

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.09}{12})^{12 \cdot 3}

1000 (1 + \frac{0.09}{12})^{12 \cdot 3} = 1308.64537 \dots

Round to the nearest hundredth:

1308.65

Amount : 1308.65

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