Question

Samuel and Kathleen deposit $700.00 into a savings account which earns 4% interestcompounded 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?

Answer 1

To find how much they will be able to spend, we have to use the compoud interest formula, so:

`\text{Amount}=700000\cdot(1+0.04)^(24)`
`Amount=1794312.92`