A bank features a savings account that has an annual percentage rate of 3.4% with interest compounded quarterly. Ashley deposits 2,000 into the account.What is the account balance after 4 years.

Solution

A bank features a savings account that has an annual percentage rate of 3.4% with interest compounded quarterly. Ashley deposits 2, 000 into the account.What is the account balance after 4 years.

Solution

Amount : 2290.05

Solution steps

Translate the problem into an equation:

A = 2000 (1 + \frac{0.034}{4})^{4 \cdot 4}

2000 (1 + \frac{0.034}{4})^{4 \cdot 4} = 2290.04721 \dots

Round to the nearest hundredth:

2290.05

Amount : 2290.05

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