Danny opened a savings account and deposited $100.00. The account earns 2% 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?
nt
P(1 + 1)^²₁. where A is the balance (final amount), P is the principal
Use the formula A = P 1 +
(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.