Jenny opened a savings account and deposited 1,016.00 as principal. The account earns 8.61% interest, compounded quarterly. What is the balance after 10 years?

Solution

Jenny opened a savings account and deposited 1, 016.00 as principal. The account earns 8.61% interest, compounded quarterly. What is the balance after 10 years?

Solution

Amount : 2381.52

Solution steps

Translate the problem into an equation:

A = 1016 (1 + \frac{0.0861}{4})^{4 \cdot 10}

1016 (1 + \frac{0.0861}{4})^{4 \cdot 10} = 2381.51705 \dots

Round to the nearest hundredth:

2381.52

Amount : 2381.52

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