Lee opened a savings account and deposited $700.00. The account earns 2% interest, compounded annually. If he wants
to use the money to buy a new bicycle in 3 years, how much
will he be able to spend on the bike?
nt
1
Use the formula A = P(1+
where A is the balance (final
amount), P is the principal (starting amount), r is the interest
rate expressed as a decimal, n is the number of times per
year that the interest is compounded, and t is the time in
years,
Round your answer to the nearest cent.