Question

I need help

Part 2: You are planning to go on the trip to Alaska in 3 years. How much money will you need to invest at a 2.5% interest rate compounded annually in order to have $2800 in 3 years? 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

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+r\right)^{t} \quad \begin{cases} A=\textit{accumulated amount}\to &2800\\ P=\textit{original amount deposited}\\ r=rate\to 2.5\%\to \frac{2.5}{100}\to &0.025\\ t=years\to &3 \end{cases} \\\\\\ 2800=P(1+0.025)^3$

solve for P.