Debbie puts 8,446.00 into an account to use for school expenses. The account earns 12% interest, compounded quarterly. How much will be in the account after 7 years?

Solution

Debbie puts 8, 446.00 into an account to use for school expenses. The account earns 12% interest, compounded quarterly. How much will be in the account after 7 years?

Solution

Amount : 19323.84

Solution steps

Translate the problem into an equation:

A = 8446 (1 + \frac{0.12}{4})^{4 \cdot 7}

8446 (1 + \frac{0.12}{4})^{4 \cdot 7} = 19323.83714 \dots

Round to the nearest hundredth:

19323.84

Amount : 19323.84

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