Deposited amount is 100.00
rate of interest is 7%
Time period 2 years
The expression for the compond intrest is
[tex]\text{Amount}=\text{Principal}(1+\frac{\text{rate of interest}}{n})^{time\times n}[/tex]Since the interest is compunded monthly so, n=12
Substitute the values
[tex]P=100,\text{ r=0.07, t=2, n=12}[/tex][tex]\text{Amount}=100(1+\frac{0.07}{12})^{2\times12}[/tex]Simplify the expression
[tex]\begin{gathered} \text{Amount}=100(1+0.0058)^{24} \\ \text{Amount}=100(1.0058)^{24} \\ \text{Amount}=\text{ }100\times1.148 \\ \text{Amount}=114.8 \end{gathered}[/tex]After 2 years emment have total amount of 114.8 in the bank so, he can spend 114.8 money to the bike.
