Question

dirk and josie deposit 1,000.00 in a savings account which earns 14% 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

Answer 1

`\begin{gathered} we\text{ have the formula} \\ I=Prt \\ \text{where} \\ I=amountof\text{interest} \\ P=\text{PRINCIPAL}=1000 \\ r=\text{ interest rate}=0.14 \\ t=\text{amount of time}=2\text{ YEARS} \\ IN\text{ THIS CASE} \\ I=(1000)(0.14)(2) \\ I=280 \\ \text{they will able to spend 1280 dollars} \end{gathered}`
`\text{that is, 1000 of saving plus 280 of interest in 2 years}`