Harold puts 700.00 into an account to use for school expenses. The account earns 9% interest, compounded quarterly. How much will be in the account after 7 years?Round your answer to the nearest cent.

Solution

Solution

Amount : 1305.18

Solution steps

Translate the problem into an equation:

A = 700 (1 + \frac{0.09}{4})^{4 \cdot 7}

700 (1 + \frac{0.09}{4})^{4 \cdot 7} = 1305.18149 \dots

Round to the nearest hundredth:

1305.18

Amount : 1305.18

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