Rose opened a savings account and deposited 800.00 as principal. The account earns 2% interest, compounded quarterly. What is the balance after 6 years?

Solution

Solution

Amount : 901.73

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.02}{4})^{4 \cdot 6}

800 (1 + \frac{0.02}{4})^{4 \cdot 6} = 901.72782 \dots

Round to the nearest hundredth:

901.73

Amount : 901.73

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