Percy is saving up money to buy a car. Percy puts 6,000.00 into an account which earns 2% interest, compounded quarterly. How much will he have in the account after 2 years?

Solution

Percy is saving up money to buy a car. Percy puts 6, 000.00 into an account which earns 2% interest, compounded quarterly. How much will he have in the account after 2 years?

Solution

Amount : 6244.24

Solution steps

Translate the problem into an equation:

A = 6000 (1 + \frac{0.02}{4})^{4 \cdot 2}

6000 (1 + \frac{0.02}{4})^{4 \cdot 2} = 6244.24226 \dots

Round to the nearest hundredth:

6244.24

Amount : 6244.24

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