Popular >

Harry opened a savings account and deposited 200.00. The account earns 1% interest, compounded quarterly. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?

Solution

Solution

Amount : 206.08

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.01}{4})^{4 \cdot 3}

200 (1 + \frac{0.01}{4})^{4 \cdot 3} = 206.08319 \dots

Round to the nearest hundredth:

206.08

Amount : 206.08

Popular Examples

simplify number 11/2 5 times a number, decreased by 2 hana is told by her doctor that her blood pressure needs to be reduce by 15% to get down to 120. What is her current blood pressure?You deposit 3500 in an account that pays 1.26% annual interest. Find the balance after 6 years when the interest is compounded monthly.a cube has a volume of 27 cubic units. what is the length of one of its edges