Zeke is saving up money to buy a car. Zeke puts 7,000.00 into an account which earns 9% interest, compounded quarterly. How much will he have in the account after 4 years?

Solution

Zeke is saving up money to buy a car. Zeke puts 7, 000.00 into an account which earns 9% interest, compounded quarterly. How much will he have in the account after 4 years?

Solution

Amount : 9993.35

Solution steps

Translate the problem into an equation:

A = 7000 (1 + \frac{0.09}{4})^{4 \cdot 4}

7000 (1 + \frac{0.09}{4})^{4 \cdot 4} = 9993.35020 \dots

Round to the nearest hundredth:

9993.35

Amount : 9993.35

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