Wesley and Mia deposit $800.00 into a savings account which earns 15% interest compounded annually. 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?

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.

Round your answer to the nearest cent.

Question

Mathematics

Uriel Clements

4 March, 18:37

Wesley and Mia deposit $800.00 into a savings account which earns 15% interest compounded annually. 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?

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.

Round your answer to the nearest cent.

+5

Answers (1)

Know the Answer?

Braxton Duncan · Answer 1

1,058

Step-by-step explanation:

Interest = 800 (.15) = 120 1 yr interest

A = 800 + 120 = 920 on the 1st year

920 (.15) = 138 int. on the 2nd year

Therefore, 920 + 138 = 1,058 final amount after 2 yrs.