An initial investment of 480 is appreciated for 9 years in an account that earns 7% interest, compounded quarterly. Find the amount of money in the account at the end of the period.

Solution

Solution

Amount : 896.36

Solution steps

Translate the problem into an equation:

A = 480 (1 + \frac{0.07}{4})^{4 \cdot 9}

480 (1 + \frac{0.07}{4})^{4 \cdot 9} = 896.35548 \dots

Round to the nearest hundredth:

896.36

Amount : 896.36

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