Brooke is saying money for a trip to the Bahamas that costs $295.99. She puts $150 into a savings account that pays 7.25% interest compounded quarterly. Will she have enough money in the account after 4 years. explain

Question

Mathematics

Catalina Paul

3 January, 23:56

Brooke is saying money for a trip to the Bahamas that costs $295.99. She puts $150 into a savings account that pays 7.25% interest compounded quarterly. Will she have enough money in the account after 4 years. explain

+1

Answers (1)

Know the Answer?

Jaylah Leblanc · Answer 1

Compounding interest formula is:

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

where P = initial amount

r = rate [the percentage as a decimal]

n = how many times per year

t = time

we plug in what we know and get

A = (150) (1 + (0.0725 / 4)) ^ (4*4)

A = 199.94

199.94 is less than 295.99

therefore she will Not have enough money for her trip.