Mark invests 2,558 in a retirement account with a fixed annual interest rate of 3% compounded 4 times per year.What will the account balance be after 16 years?

Solution

Mark invests 2, 558 in a retirement account with a fixed annual interest rate of 3% compounded 4 times per year.What will the account balance be after 16 years?

Solution

Amount : 4126.52

Solution steps

Translate the problem into an equation:

A = 2558 (1 + \frac{0.03}{4})^{4 \cdot 16}

2558 (1 + \frac{0.03}{4})^{4 \cdot 16} = 4126.52089 \dots

Round to the nearest hundredth:

4126.52

Amount : 4126.52

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