Respuesta :
harry and marie despoit $800.00 into a savings account which earns 9% 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
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$800
r=9%=9/100=0.09
n=12
t=2 years
substitute in the expression above
[tex]\begin{gathered} A=800(1+\frac{0.09}{12})^{12\cdot2} \\ \\ A=800(\frac{12.09}{12})^{(24)} \\ A=\$957.13 \end{gathered}[/tex]