Andrea wants to have $9500 to travel to France when she is 22. She currently has $5976 in a savings account earning 5% annual compound interest. Andrea is 14 now. Homework Help ✎
If she does not take out or deposit any money, how much money will Andrea have when she is 18?
Will Andrea have enough money for her trip when she is 22?
Formula for compound interest:
A = P(1 + r)n
Find how much money Andrea will have in 8 years.
Is this amount enough?
Use the formula from part (a).