Roxanne puts 1,562.00 into an account to use for school expenses. The account earns 10.42% interest, compounded quarterly. How much will be in the account after 5 years?

Solution

Roxanne puts 1, 562.00 into an account to use for school expenses. The account earns 10.42% interest, compounded quarterly. How much will be in the account after 5 years?

Solution

Amount : 2612.47

Solution steps

Translate the problem into an equation:

A = 1562 (1 + \frac{0.1042}{4})^{4 \cdot 5}

1562 (1 + \frac{0.1042}{4})^{4 \cdot 5} = 2612.47127 \dots

Round to the nearest hundredth:

2612.47

Amount : 2612.47

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