Clayton puts 500.00 into an account to use for school expenses. The account earns 8% interest, compounded quarterly. How much will be in the account after 8 years?

Solution

Solution

Amount : 942.27

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.08}{4})^{4 \cdot 8}

500 (1 + \frac{0.08}{4})^{4 \cdot 8} = 942.27029 \dots

Round to the nearest hundredth:

942.27

Amount : 942.27

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