Kaylee opened a savings account and deposited
$458.00
. The account earns
2.06%
interest, compounded monthly. If she wants to use the money to buy a new bicycle in 2 years, how much will she be able to spend on the bike? Use the formula
A=P(1+(r)/(n))^(nt)
, 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.
$

Question

Kaylee opened a savings account and deposited

$458.00

. The account earns

2.06%

interest, compounded monthly. If she wants to use the money to buy a new bicycle in 2 years, how much will she be able to spend on the bike? Use the formula

A=P(1+(r)/(n))^(nt)

, 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.

$

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