Lena is saving up money to buy a car. Lena puts 8,000.00 into an account which earns 9% interest, compounded quarterly. How much will she have in the account after 10 years?

Solution

Lena is saving up money to buy a car. Lena puts 8, 000.00 into an account which earns 9% interest, compounded quarterly. How much will she have in the account after 10 years?

Solution

Amount : 19481.51

Solution steps

Translate the problem into an equation:

A = 8000 (1 + \frac{0.09}{4})^{4 \cdot 10}

8000 (1 + \frac{0.09}{4})^{4 \cdot 10} = 19481.51172 \dots

Round to the nearest hundredth:

19481.51

Amount : 19481.51

Popular Examples

the product of a number and 10 is 200 ten more than three times a number is 25.The sum of three consecutive integers is-3. What are the integers?the sum of five times a number and 24 is seventy-nine How much time does it take for a cyclist to travel a distance of 45 miles at a speed of 15 mph?