Kirk opened a savings account and deposited 8,459.00 as principal. The account earns 6% interest, compounded quarterly. What is the balance after 2 years?

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Solution

Kirk opened a savings account and deposited 8, 459.00 as principal. The account earns 6% interest, compounded quarterly. What is the balance after 2 years?

Solution

Amount : 9529

Solution steps

Translate the problem into an equation:

A = 8459 (1 + \frac{0.06}{4})^{4 \cdot 2}

8459 (1 + \frac{0.06}{4})^{4 \cdot 2} = 9529.00079 \dots

Round to the nearest hundredth:

9529

Amount : 9529

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