Vince is saving up money to buy a car. Vince puts 7,000.00 into an account which earns 3% interest, compounded annually. How much will he have in the account after 10 years?

Solution

Vince is saving up money to buy a car. Vince puts 7, 000.00 into an account which earns 3% interest, compounded annually. How much will he have in the account after 10 years?

Solution

Amount : 9407.41

Solution steps

Translate the problem into an equation:

A = 7000 (1 + \frac{0.03}{1})^{1 \cdot 10}

7000 (1 + \frac{0.03}{1})^{1 \cdot 10} = 9407.41465 \dots

Round to the nearest hundredth:

9407.41

Amount : 9407.41

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