Wesley opened a savings account and deposited 100.00 as principal. The account earns 13% interest, compounded quarterly. What is the balance after 7 years?

Solution

Solution

Amount : 244.86

Solution steps

Translate the problem into an equation:

A = 100 (1 + \frac{0.13}{4})^{4 \cdot 7}

100 (1 + \frac{0.13}{4})^{4 \cdot 7} = 244.86216 \dots

Round to the nearest hundredth:

244.86

Amount : 244.86

Popular Examples

Phil is Tom's father. Phil is 35 years old. Three years ago, Phil was four times as old as his son was then. How old is Tom now?Mia is twice as old as Nina. In three years, the sum of their age will be 21. How old is Nina?Half of a number plus 30 is equal to 4 times the number plus 2.Karen Gaines invested 12,000 in a money market account with an interest rate of 2.25% compounded semiannually. Seven years later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the account?sixteen increased by twice a number is-56