Given:
Brooke is saving money
she puts $150 into a savings account
The interest = r = 7.25% = 0.0725
Compounded quarterly, n = 4
We will find the balance after 4 years
So, t = 4
We will use the following formula:
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ P=150,r=0.0725,n=4,t=4 \end{gathered}[/tex]
Substitute and simplify
[tex]A=150\cdot(1+\frac{0.0725}{4})^{4\cdot4}=150\cdot1.018125^{16}\approx199.94[/tex]
Compare the result with the cost to Bahamas ($295.99)
So, it will be less than the cost
so, the answer will be
After 4 years, she will not have enough money.
