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Olivia S.

asked • 04/16/18

Trip to Peru Algebra 2 question HELP!

2. You are planning to go on this trip in 2 years.  How much money will you need to invest at a 2.3% interest rate compounded annually in order to have $2400 in 2 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)
 
3. Now say you only have $1600 to invest and the highest interest rate you can find is 3.55% compounded annually.  If you decide to wait 7 years to go on the trip, how much money will you have to spend on the trip?  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)

Olivia S.

I'm confused though. On number 2 I don't know which variables plug into the equation. 
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04/16/18

Olivia S.

Would the answer for number 2 be 220.4$
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04/16/18

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