Diane opened a savings account and deposited 9,278.00 as principal. The account earns 3.11% interest, compounded quarterly. What is the balance after 4 years?

Solution

Diane opened a savings account and deposited 9, 278.00 as principal. The account earns 3.11% interest, compounded quarterly. What is the balance after 4 years?

Solution

Amount : 10501.99

Solution steps

Translate the problem into an equation:

A = 9278 (1 + \frac{0.0311}{4})^{4 \cdot 4}

9278 (1 + \frac{0.0311}{4})^{4 \cdot 4} = 10501.99137 \dots

Round to the nearest hundredth:

10501.99

Amount : 10501.99

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