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Gabrielle puts 8,000.00 into an account to use for school expenses. The account earns 2% interest, compounded quarterly. How much will be in the account after 5 years?

Solution

Gabrielle puts 8, 000.00 into an account to use for school expenses. The account earns 2% interest, compounded quarterly. How much will be in the account after 5 years?

Solution

Amount : 8839.16

Solution steps

Translate the problem into an equation:

A = 8000 (1 + \frac{0.02}{4})^{4 \cdot 5}

8000 (1 + \frac{0.02}{4})^{4 \cdot 5} = 8839.16461 \dots

Round to the nearest hundredth:

8839.16

Amount : 8839.16

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