Martha invests 7700 in a new savings account which earns 5.2% annual interest, compounded quarterly. What will be the value of her investment after 4 years? Round to the nearest cent.

Solution

Solution

Amount : 9467.64

Solution steps

Translate the problem into an equation:

A = 7700 (1 + \frac{0.052}{4})^{4 \cdot 4}

7700 (1 + \frac{0.052}{4})^{4 \cdot 4} = 9467.64250 \dots

Round to the nearest hundredth:

9467.64

Amount : 9467.64

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