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Sav [38]
3 years ago
6

During her first year of college, Sara put $2000 in the bank to save for a trip to Italy after graduation. The money earned 3% s

imple annual interest. After 4 years, how much money did she have in the bank for her trip?
Mathematics
2 answers:
konstantin123 [22]3 years ago
8 0

Answer:

2240

Step-by-step explanation:

vodomira [7]3 years ago
7 0

Answer:

<u>Sara will have US$ 2,251.02 in the bank after 4 years for her trip to Italy.</u>

Step-by-step explanation:

1. Let's review the data given to us for solving the question:

Investment of Sara during her 1st year of college = US$ 2,000

Duration of the investment = 4 years

Annual interest rate = 3%

2. Let's find the future value of this investment after 4 years, using the following formula:

FV = PV * (1 + r) ⁿ

PV = Investment of Sara during her 1st year of college = US$ 2,000

number of periods (n) = 4

rate (r) = 3% = 0.03

Replacing with the real values, we have:

FV = 2,000 * (1 + 0.03) ⁴

FV = 2,000 * (1.03) ⁴

FV = 2,000 * 1.12550881

<u>FV = 2,251.02</u>

<u>Sara will have US$ 2,251.02 in the bank after 4 years for her trip to Italy.</u>

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