You and your best friend want to take a vacation to Peru. You have done some research and discovered that it will cost $2400 for the plane tickets, all-inclusive hotel and resort, and souvenirs. You have already saved $1750. If you invest this money in a savings account with a 2.3% interest rate compounded annually, how long will it take to earn enough money to go on the trip? Use the compound interest formula A = P (1 + i) n, where A is the accumulated amount, P is the principal, i is the interest rate per year, and n is the number of years. Round your final answer to the nearest tenth

Question

Aleena Cantrell

Mathematics

11 November, 17:04

You and your best friend want to take a vacation to Peru. You have done some research and discovered that it will cost $2400 for the plane tickets, all-inclusive hotel and resort, and souvenirs. You have already saved $1750. If you invest this money in a savings account with a 2.3% interest rate compounded annually, how long will it take to earn enough money to go on the trip? Use the compound interest formula A = P (1 + i) n, where A is the accumulated amount, P is the principal, i is the interest rate per year, and n is the number of years. Round your final answer to the nearest tenth

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Nevaeh Williams · Answer 1

To calculate for the years it would take, we use the compound interest formula. F=P (1+i) ^n. substitute F=2800, P=1900, i=2.5% and then we solve for n. We find that n=15.7 years or around 15-16 years.