Could someone help me check my work? You are planning to go on the trip to Europe in 2 years. How much money will you need to invest at a 2.3% interest rate compounded annually in order to have $1600 in 2 years? Use the compound interest formula A = P (1 + i)n. (Round answer to the nearest cent) First you would set up your equation: 1600=P(1+0.023)^2 Solving from here: P=1600/(1.023)^2=1528.86 So you would need to invest $1528.86 in order to have $1600 in two year.

Question

Could someone help me check my work? You are planning to go on the trip to Europe in 2 years.  How much money will you need to invest at a 2.3% interest rate compounded annually in order to have $1600 in 2 years?  Use the compound interest formula A = P (1 + i)n. (Round answer to the nearest cent) First you would set up your equation: 1600=P(1+0.023)^2 Solving from here: P=1600/(1.023)^2=1528.86 So you would need to invest $1528.86 in order to have $1600 in two year.