Popular >

Bridgette opened a savings account and deposited 3,000.00. The account earns 5% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?

Solution

Bridgette opened a savings account and deposited 3, 000.00. The account earns 5% interest, compounded quarterly. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?

Solution

Amount : 3482.26

Solution steps

Translate the problem into an equation:

A = 3000 (1 + \frac{0.05}{4})^{4 \cdot 3}

3000 (1 + \frac{0.05}{4})^{4 \cdot 3} = 3482.26355 \dots

Round to the nearest hundredth:

3482.26

Amount : 3482.26

Popular Examples

Ishaan is 3 times as old as Christopher and is also 14 years older than Christopher. How old is Ishaan?Elizabeth opened a savings account and deposited 6,000.00 as principal. The account earns 14% interest, compounded annually. What is the balance after 4 years?Negative three times a number increased by seven is less than negative eleven.Joey opened a savings account and deposited 300.00 as principal. The account earns 9% interest, compounded annually. How much interest will he earn after 2 years?Round your answer to the nearest cent.If you triple a number then subtract 14, you get 2/3