Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Jasper opened a savings account and deposited 200.00 the account earns 9%interest compounded annually if he wants to use the money to buy a new bicycle in 2 years how much will he able to spend on the bike

Sagot :

The formula for calculating the amount of money after compounding for a period of time is expressed as;

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

P is the principal (amount deposited)

r is the rate

t is the time

n is the time of compounding

Given

P = 200.00

r = 9% = 0.09

t = 2 years

n = 1 year

Substitute the given parameters into the formula

A = 200(1+0.09/1)^1(2)

A = 200(1.09)^2

A = 200(1.1881)

A = 237.62

Hence he will be able to spend 237.62 on the bike

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.