Question

Josie opened a savings account and deposited $200.00 the account earns 1% interest compounded monthly. if she wants to use the money to buy a new bicycle in 2 years how much will she able to spend on the bike

Answer 1

$\begin{gathered} I=\text{Prt} \\ \text{where} \\ I=\text{interest} \\ P=\text{principal}=200 \\ r=\text{ rate}=0.01 \\ t=\text{time}=24\text{ months} \\ I\text{n this case} \\ I=(200)(0.01)(24) \\ I=48\text{ dollars} \\ \text{then, she will able to spend 48 dollars} \end{gathered}$