Question

Now say you only have $1700 to invest and the highest interest rate you can find is 3.7% compounded annually. If you decide to wait 8 years to go on the trip, how much money will you have to spend on the trip? Use the compound interest formula A = P (1 + i)n. (Round final answer to the nearest cent, but otherwise don’t round any intermediate values)

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+r\right)^{t} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 1700\\ r=rate\to 3.7\%\to \frac{3.7}{100}\to &0.037\\ t=years\to &8 \end{cases} \\\\\\ A=1700(1+0.037)^8$