A bank features a savings account that has an annual percentage rate of 3.5 % with interest compounded quarterly. Amber deposits 10,000 into the account.How much money will Amber have in the account in 1 year?

Solution

A bank features a savings account that has an annual percentage rate of 3.5 % with interest compounded quarterly. Amber deposits 10, 000 into the account.How much money will Amber have in the account in 1 year?

Solution

Amount : 10354.62

Solution steps

Translate the problem into an equation:

A = 10000 (1 + \frac{0.035}{4})^{4 \cdot 1}

10000 (1 + \frac{0.035}{4})^{4 \cdot 1} = 10354.62060 \dots

Round to the nearest hundredth:

10354.62

Amount : 10354.62

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