Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.
Sagot :
We can solve this problem by means of the formula of the compound interest formula:
[tex]A=P\times(1+\frac{r}{n})^{nt}[/tex]Where A is the amount of money saved in the account after a time t, P is the principal, r is the rate of interest in decimals and n is the number of times interest is compound per year.
If we solve for P from this equation, we get:
[tex]P=\frac{A}{(1+\frac{r}{n})^{nt}}[/tex]From the statement of the question we know that:
A = $500, since this is the amount of money that Hannah wants to save
n = 4
t = 3 years
r = 15/100 = 0.15
If we replace these values into the equation above, we get:
[tex]P=\frac{500}{(1+\frac{0.15}{4})^{4\times3}}=321.45[/tex]Then Hannah, has to deposit $321.45 in order to buy the bicycle in 3 years
We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.
