SOLUTION: Josh opened a savings account and deposited $400.00. The account earns 12% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much wil

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Question 1160665: Josh opened a savings account and deposited $400.00. The account earns 12% 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?
Found 2 solutions by ikleyn, MathTherapy:
Answer by ikleyn(52756)   (Show Source):
You can put this solution on YOUR website!
.

Use the formula Future value = . With the given formula, complete the assignment on your own.

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On discretely compounded discounts, see the lessons
    - Compound interest percentage problems
    - Problems on discretely compound accounts
in this site, and learn the subject from there.

After reading these lessons, you will tackle such problems on your own without asking for help from outside.

Also, you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lessons are the part of this online textbook under the topic "Logarithms".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

Happy learning (!)

Answer by MathTherapy(10549)   (Show Source):
You can put this solution on YOUR website!

Josh opened a savings account and deposited $400.00. The account earns 12% 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?

, based on , which becomes: