Shivani is saving up money to buy a car. Shivani puts 5,000.00 into an account which earns 5% interest, compounded quarterly. How much will she have in the account after 9 years?

Solution

Shivani is saving up money to buy a car. Shivani puts 5, 000.00 into an account which earns 5% interest, compounded quarterly. How much will she have in the account after 9 years?

Solution

Amount : 7819.72

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.05}{4})^{4 \cdot 9}

5000 (1 + \frac{0.05}{4})^{4 \cdot 9} = 7819.71909 \dots

Round to the nearest hundredth:

7819.72

Amount : 7819.72

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