Luke and Emily deposit 500.00 into a savings account which earns 8% interest compounded quarterly. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Solución

Solución

Amount : 585.83

Pasos de solución

Translate the problem into an equation:

A = 500 (1 + \frac{0.08}{4})^{4 \cdot 2}

500 (1 + \frac{0.08}{4})^{4 \cdot 2} = 585.82969 \dots

Round to the nearest hundredth:

585.83

Amount : 585.83

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