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Zeke and Scarlett deposit $500.00 into a savings account which earns 5% 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?
= P 1 + , where A is the balance (final amount), P is the principal
(starting amount), r is the interest rate expressed as a decimal, n is the number of times per
year that the interest is compounded, and t is the time in years.

1 Answer

0 votes

Answer:

578.81

Explanation:

PV(1+i)ⁿ

500(1+.05)³

578.8125

which rounds to 578.81

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