Answer:
She needs to have approximately $6950 on that account.
Step-by-step explanation:
Since the account has an interest rate of 9% annually, then it's compounded and the earnings can be found by the following expression:
[tex]M = C*(1 + r)^t[/tex]
Where M is the final amount, C is the initial amount, r is the interest rate and t is the time elapsed in years.
She needs the money in 3 years, therefore t = 3. Applying this to the problem we have:
[tex]9000 = C*(1 + 0.09)^3\\9000 = C*(1.09)^3\\C*1.295 = 9000\\C = \frac{9000}{1.295}\\C = 6949.81[/tex]
She needs to have approximately $6950 on that account.
