Popular >

Luke and Emily deposit 500.00 into a savings account which earns 8% interest compounded quarterly. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend?

Solution

Solution

Amount : 585.83

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.08}{4})^{4 \cdot 2}

500 (1 + \frac{0.08}{4})^{4 \cdot 2} = 585.82969 \dots

Round to the nearest hundredth:

585.83

Amount : 585.83

Popular Examples

What is the volume of a sphere with radius of 2.6ft , rounded to the nearest tenth of a cubic foot?The sum of a certain positive number and the square of that number is 12. What si the number?If a fair coin is tossed 6 times, what is the probability, rounded to the nearest thousandth, of getting at most 2 heads?What would be the compound interest obtained on an amount of 4800 at a rate of 5% per year for 3 years The product of a number and 7 is 42.