Please help for 20 points!! thank you if you help
1 answer:
You might be interested in
To solve this problem, we must use the formula:
Where:
• A = final amount = ?,
,• P = starting amount = $400.00,
,• r = interest rate in decimals = 4% = 0.04,
,• n = number of times per year that the interest is compounded = 1 (because interest is compounded annually),
,• t = time in years = 2.
Replacing the data of the problem in the equation above, we get:
Answer
After 2 years, he will be able to spend $432.64 on the bike.