Hassan and Anne deposit 6,000.00 into a savings account which earns 10% 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?

Soluzione

H a ss an an d A nn e d e p os i t 6, 000.00 in t o a s a v in g s a cco u n t w hi c h e a r n s 10% in t eres t co m p o u n d e d m o n t h l y . T h ey w an t t o u se t h e m o n ey in t h e a cco u n t t o g o o n a t r i p in 2 ye a rs . Ho w m u c h w i ll t h ey b e ab l e t o s p e n d ?

Amount : 7322.35

Fasi della soluzione

Translate the problem into an equation:

A = 6000 (1 + \frac{0.1}{12})^{12 \cdot 2}

6000 (1 + \frac{0.1}{12})^{12 \cdot 2} = 7322.34576 \dots

Arrotondare all' hundredth più vicino:

7322.35

Amount : 7322.35