Ariel opened a savings account and deposited $500.00. The account earns 8% interest, compounded annually. If she wants to use the money to buy a new bicycle in 3 years, how
much will she be able to spend on the bike?
nt
Use the formula A = P 1 + 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.