Mackenzie opened a savings account and deposited 1,074.00 as principal. The account earns 11% interest, compounded quarterly. What is the balance after 7 years?

Solution

Mackenzie opened a savings account and deposited 1, 074.00 as principal. The account earns 11% interest, compounded quarterly. What is the balance after 7 years?

Solution

Amount : 2295.6

Solution steps

Translate the problem into an equation:

A = 1074 (1 + \frac{0.11}{4})^{4 \cdot 7}

1074 (1 + \frac{0.11}{4})^{4 \cdot 7} = 2295.59640 \dots

Round to the nearest hundredth:

2295.6

Amount : 2295.6

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