dirk and josie deposit 1,000.00 in a savings account which earns 14% interest compounded monthly they want to use the money in the account to go on a trip in 2 years how much will they be able to spend

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28-10-2022
Mathematics

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dirk and josie deposit 1,000.00 in a savings account which earns 14% interest compounded monthly they want to use the money in the account to go on a trip in 2 years how much will they be able to spend

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RicoA637062 RicoA637062 · Answer 1 · 2022-10-28T00:34:39+02:00

[tex]\begin{gathered} we\text{ have the formula} \\ I=Prt \\ \text{where} \\ I=amountof\text{interest} \\ P=\text{PRINCIPAL}=1000 \\ r=\text{ interest rate}=0.14 \\ t=\text{amount of time}=2\text{ YEARS} \\ IN\text{ THIS CASE} \\ I=(1000)(0.14)(2) \\ I=280 \\ \text{they will able to spend 1280 dollars} \end{gathered}[/tex][tex]\text{that is, 1000 of saving plus 280 of interest in 2 years}[/tex]