Kirk and Pamela deposit 600.00 into a savings account which earns 2% interest compounded quarterly. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Solution

Solution

Amount : 624.42

Solution steps

Translate the problem into an equation:

A = 600 (1 + \frac{0.02}{4})^{4 \cdot 2}

600 (1 + \frac{0.02}{4})^{4 \cdot 2} = 624.42422 \dots

Round to the nearest hundredth:

624.42

Amount : 624.42

Popular Examples

the sum of three consecutive integers is 267 What is the volume of a sphere with a diameter of 23.5 in, rounded to the nearest tenth of a cubic inch?The circumference of a circle is 15pi ft. What is the area, in square feet? Express your answer in terms of pi The population of the urban city of Port Roswell is approximately 754, 000. Due to the trend of people moving to smaller towns, the population is expected to decrease by about 2.4% each year. You can use a function to approximate the population x years from now.Write an equation for the function.The area of a circle is 100pi square feet. What is the circumference?