Harold puts 700.00 into an account to use for school expenses. The account earns 9% interest, compounded quarterly. How much will be in the account after 7 years?Round your answer to the nearest cent.

Soluzione

H a ro l d p u t s 700.00 in t o an a cco u n t t o u se f or sc h oo l e x p e n ses . T h e a cco u n t e a r n s 9% in t eres t, co m p o u n d e d q u a r t er l y . Ho w m u c h w i ll b e in t h e a cco u n t a f t er 7 ye a rs ? R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Amount : 1305.18

Fasi della soluzione

Translate the problem into an equation:

A = 700 (1 + \frac{0.09}{4})^{4 \cdot 7}

700 (1 + \frac{0.09}{4})^{4 \cdot 7} = 1305.18149 \dots

Arrotondare all' hundredth più vicino:

1305.18

Amount : 1305.18