Question

HELP

Deion and Ellen deposit $1,000.00 into a savings account which earns 1% interest compounded annually. 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?

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$1000\\ r=rate\to 1\%\to (1)/(100)\dotfill &0.01\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &3 \end{cases} \\\\\\ A = 1000\left(1+(0.01)/(1)\right)^(1\cdot 3) \implies A = 1000( 1.01)^(3)\implies A \approx 1030.30`