Ms. Anderson deposits $700 into a savings account that pays a simple interest of 2% per year. Which of the following would be th
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Answer:
He will have $276.10 available towards the down payment for his motorcycle
Step-by-step explanation:
The compound interest formula is given by:
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
In this problem, we have that:
Compounded quarterly, so n = 12/4 = 3.
We have to find A.
He will have $276.10 available towards the down payment for his motorcycle