Remember that
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$ 4,000
A=$7,148
r=9.4%=0.094
n=4
substitute the given values
apply log both sides
Answer:
Laura will have exactly $72.00 after purchasing the bicycle.
Step-by-step explanation:
We are given that Laura ends $115 per month of babysitting.
We also learn that she wants to save her money from June and July, which means she wants to save her money over a period of two months.
Therefore, she will earn $115 twice.
Then, she wants to purchase a bicycle that costs $158, so we need to subtract the cost of the bicycle from her total earnings.
Therefore, Laura will have exactly $72.00 remaining after her purchase.