document.write( "Question 1152236: Lacey opened a savings account and deposited $100.00. The account earns 6% 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?\r
\n" ); document.write( "\n" ); document.write( "Round your answer to the nearest cent. \n" ); document.write( "
Algebra.Com's Answer #774224 by Theo(13342)\"\" \"About 
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f = p * (1 + r) ^ n
\n" ); document.write( "f is the future value.
\n" ); document.write( "p is the present value.
\n" ); document.write( "r is the interest rate per time period.
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "time periods are months.
\n" ); document.write( "rate is the percent divided by 100.
\n" ); document.write( "p = 100
\n" ); document.write( "r = 6% per year / 12 = .5% per month / 100 = .005 per month.
\n" ); document.write( "n = 2 years * 12 = 24 months.\r
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\n" ); document.write( "\n" ); document.write( "formula becomes f = 100 * (1 + .005) ^ 24
\n" ); document.write( "solve for f to get:
\n" ); document.write( "f = 112.7159776 = 112.72
\n" ); document.write( "that's how much she will be able to spend on the bike in 2 years.\r
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