Tyler opened a savings account and deposited 3,000.00. The account earns 4% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solución

Tyler opened a savings account and deposited 3, 000.00. The account earns 4% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solución

Amount : 3381.82

Pasos de solución

Translate the problem into an equation:

A = 3000 (1 + \frac{0.04}{12})^{12 \cdot 3}

3000 (1 + \frac{0.04}{12})^{12 \cdot 3} = 3381.81562 \dots

Round to the nearest hundredth:

3381.82

Amount : 3381.82

Ejemplos populares

Megan opened a savings account 7 years ago. The account earns 6% interest, compounded quarterly. If the current balance is 200.00, how much did she deposit initially?The radius of a circle is 3 inches. What is the circle's circunferencia?Find the volume of a sphere with a radio of 7 in:the sum of 5 consecutive even numbers is 200. What is the fifth number in this sequence?Molly opened a savings account and deposited 800.00 as principal. The account earns 15% interest, compounded annually. How much interest will she earn after 2 years??