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Zoe invested 16,000 in an account paying an interest rate of 3.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 20 years?

Solution

Zoe invested 16, 000 in an account paying an interest rate of 3.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 20 years?

Solution

Amount : 32765.23

Solution steps

Translate the problem into an equation:

A = 16000 (1 + \frac{0.036}{4})^{4 \cdot 20}

16000 (1 + \frac{0.036}{4})^{4 \cdot 20} = 32765.23458 \dots

Round to the nearest hundredth:

32765.23

Amount : 32765.23

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