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Lynna [10]
3 years ago
7

Cheryl wants to have $2300 in spending money to take on a trip to Disney World in three years. How much must she deposit now in

a savings account that pays 2% per year to have the money she needs in three years?
To have $2,300 in three years. Cheryl would need to deposit $_____?
Mathematics
1 answer:
Savatey [412]3 years ago
4 0

Use the compound amount formula:

$2,300 = P(1+0.02)^3.  Solve this for P:

P = $2,300 / (1.02)^3 =  $2167.34.

By depositing $2,167.34 now, Cheryl would have $$2300 after three years.


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