Question

Hello could you please help me with question number 9?

Answer 1

Given:

Brooke is saving money

she puts $150 into a savings account

The interest = r = 7.25% = 0.0725

Compounded quarterly, n = 4

We will find the balance after 4 years

So, t = 4

We will use the following formula:

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ P=150,r=0.0725,n=4,t=4 \end{gathered}`

Substitute and simplify

`A=150\cdot(1+(0.0725)/(4))^(4\cdot4)=150\cdot1.018125^(16)\approx199.94`

Compare the result with the cost to Bahamas ($295.99)

So, it will be less than the cost

so, the answer will be

After 4 years, she will not have enough money.