Brenna is saving up money to buy a car. Brenna puts 5,000.00 into an account which earns 2% interest, compounded quarterly. How much will she have in the account after 3 years?'

Solution

Brenna is saving up money to buy a car. Brenna puts 5, 000.00 into an account which earns 2% interest, compounded quarterly. How much will she have in the account after 3 years?'

Solution

Amount : 5308.39

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.02}{4})^{4 \cdot 3}

5000 (1 + \frac{0.02}{4})^{4 \cdot 3} = 5308.38905 \dots

Round to the nearest hundredth:

5308.39

Amount : 5308.39

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