Charlie invests 6,284 in a retirement account with a fixed annual interest rate of 3% compounded 4 times per year. What will the account balance be after 18 years?

Solution

Charlie invests 6, 284 in a retirement account with a fixed annual interest rate of 3% compounded 4 times per year. What will the account balance be after 18 years?

Solution

Amount : 10761.68

Solution steps

Translate the problem into an equation:

A = 6284 (1 + \frac{0.03}{4})^{4 \cdot 18}

6284 (1 + \frac{0.03}{4})^{4 \cdot 18} = 10761.68120 \dots

Round to the nearest hundredth:

10761.68

Amount : 10761.68

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