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.

Solución

S co tt an d A d e l e d e p os i t 1, 000.00 in t o a s a v in g s a cco u n t w hi c h e a r n s 9% in t eres t co m p o u n d e d m o n t h l y . T h ey w an t t o u se t h e m o n ey in t h e a cco u n t t o g o o n a t r i p in 3 ye a rs . Ho w m u c h w i ll t h ey b e ab l e t o s p e n d ? R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Amount : 1308.65

Pasos de solución

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

Redondear al más cercano hundredth:

1308.65

Amount : 1308.65