Question

harry and marie despoit $800.00 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

Answer 1

harry and marie despoit $800.00 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 2 years how much will they be able to spend​

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

P=$800

r=9%=9/100=0.09

n=12

t=2 years

substitute in the expression above

`\begin{gathered} A=800(1+(0.09)/(12))^(12\cdot2) \\ \\ A=800((12.09)/(12))^((24)) \\ A=\$957.13 \end{gathered}`

the answer is

$957.13