Question

Brooke is saying money for a trip to the Bahamas that costs $295.99. She puts $150 into a savings account that pays 7.25% interest compounded quarterly. Will she have enough money in the account after 4 years. explain

Answer 1

compounding interest formula is:
A = P(1 + (r/n)) ^(nt)

where P = initial amount
r = rate [the percentage as a decimal]
n = how many times per year
t = time

we plug in what we know and get
A = (150)(1 + (0.0725 / 4))^(4*4)
A = 199.94

199.94 is less than 295.99
therefore she will Not have enough money for her trip.