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300.00. The account earns 6% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?

Solution

Solution

Amount : 358.69

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.06}{4})^{4 \cdot 3}

300 (1 + \frac{0.06}{4})^{4 \cdot 3} = 358.68545 \dots

Round to the nearest hundredth:

358.69

Amount : 358.69

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