Tommaso plans to compete in a regional bicycle race after he graduates, however he needs to buy a racing bicycle. He finds a bicycle that costs 1100 euro (EUR). Tommaso has 950 EUR and invests this money in an account that pays 5% interest per year, compounded monthly. 2a. Determine the amount that he will have in his account after 3 years. Give your answer correct to two decimal places. The cost of the bicycle, C. can be modelled by C 20+1100, where is the number of years since Tommaso invested his money. 2b. Find the difference between the cost of the bicycle and the amount of money in Tommaso's account after 3 years. Give your answer correct to two decimal places. 2c. After m complete months Tommaso will, for the first time, have enough money in his account to buy the bicycle. Find the value of m.
Tommaso plans to compete in a regional bicycle race after he graduates, however he needs to buy a racing bicycle. He finds a bicycle that costs 1100 euro (EUR). Tommaso has 950 EUR and invests this money in an account that pays 5% interest per year, compounded monthly. 2a. Determine the amount that he will have in his account after 3 years. Give your answer correct to two decimal places. The cost of the bicycle, C. can be modelled by C 20+1100, where is the number of years since Tommaso invested his money. 2b. Find the difference between the cost of the bicycle and the amount of money in Tommaso's account after 3 years. Give your answer correct to two decimal places. 2c. After m complete months Tommaso will, for the first time, have enough money in his account to buy the bicycle. Find the value of m.
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