Intermediate Algebra (6th Edition)

Published by Pearson
ISBN 10: 0321785045
ISBN 13: 978-0-32178-504-6

Chapter 2 - Section 2.3 - Formulas and Problem Solving - Exercise Set - Page 74: 36



Work Step by Step

Using $A=P\left( 1+\dfrac{r}{n} \right)^{nt}$ or the compound interest formula, then \begin{array}{l}\require{cancel} A=800\left( 1+\dfrac{0.055}{2} \right)^{2(3)} \\\\ A=800\left( 1.0275 \right)^{6} \\\\ A=941.4146888074142578125 .\end{array} Since there are $5$ people each earning this much in $3$ years, then the total amount is \begin{array}{l}\require{cancel} 5(941.4146888074142578125) \\\\= 4707.0734440370712890625 \\\\\approx 4707.07 .\end{array} Since $\$4,707.07$ is greater than $\$4500,$ then they will have enough to spend for Disneyland.
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