Patrick opened a savings account and deposited 500.00 as principal. The account earns 9% interest, compounded quarterly. What is the balance after 7 years?

Solution

Solution

Amount : 932.27

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.09}{4})^{4 \cdot 7}

500 (1 + \frac{0.09}{4})^{4 \cdot 7} = 932.27249 \dots

Round to the nearest hundredth:

932.27

Amount : 932.27

Popular Examples

The radius of a circle is 10.9ft Find the circumference to the nearest tenth.What is the area of a square with each side being 2 units?Hong deposits 3000 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 3 years?2100 dollars is placed in an account with an annual interest rate of 6%. To the nearest tenth of a year, how long will it take for the account value to reach 9400 dollars?Kamal and Nora deposit 10,000.00 into a savings account which earns 5% interest compounded monthly. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?