Dylan invested 7,200 in an account paying an interest rate of 2.3% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 12 years?

Solution

Dylan invested 7, 200 in an account paying an interest rate of 2.3% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 12 years?

Solution

Amount : 9481.01

Solution steps

Translate the problem into an equation:

A = 7200 (1 + \frac{0.023}{4})^{4 \cdot 12}

7200 (1 + \frac{0.023}{4})^{4 \cdot 12} = 9481.00719 \dots

Round to the nearest hundredth:

9481.01

Amount : 9481.01

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