Stanley opened a savings account and deposited 7,000.00 as principal. The account earns 7% interest, compounded quarterly. How much interest will he earn after 5 years?

Solution

Stanley opened a savings account and deposited 7, 000.00 as principal. The account earns 7% interest, compounded quarterly. How much interest will he earn after 5 years?

Solution

Interest : 2903.45

Solution steps

Translate the problem into an equation:

9903.44737 \dots = 7000 + I

Solve for

I, 9903.44737 \dots = 7000 + I : I = 2903.45

Interest : 2903.45

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