Question

The Howard’s are saving up to go on a family vacation in 2 years. They invest 2300 into an account with an annual interest rate of 1.23%

Answer 1

$2384.87

Explanation:

Given data

P=2300

t= 2 years

r= 1.23%

Required

The amount in their account

Let us apply the simple interest formula

A=P(1+rt)

Substitute

A= 2300(1+0.0123*3)

A= 2300(1+0.0369)

A= 2300*1.0369

A=$2384.87

Hence the amount in the account is $2384.87