Hector opened a savings account and deposited 2,289.00. The account earns 8% interest, compounded quarterly. If he wants to use the money to buy a new bicycle in 2 years, how much will he be able to spend on the bike?

Solución

Hector opened a savings account and deposited 2, 289.00. The account earns 8% interest, compounded quarterly. If he wants to use the money to buy a new bicycle in 2 years, how much will he be able to spend on the bike?

Solución

Amount : 2681.93

Pasos de solución

Translate the problem into an equation:

A = 2289 (1 + \frac{0.08}{4})^{4 \cdot 2}

2289 (1 + \frac{0.08}{4})^{4 \cdot 2} = 2681.92832 \dots

Round to the nearest hundredth:

2681.93

Amount : 2681.93

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