Jeremiah opened a savings account and deposited 100.00 as principal. The account earns 4% interest, compounded quarterly. How much interest will he earn after 4 years?

Solution

Solution

Interest : 17.26

Solution steps

Translate the problem into an equation:

117.25786 \dots = 100 + I

Solve for

I, 117.25786 \dots = 100 + I : I = 17.26

Interest : 17.26

Popular Examples

You deposit 14000 in an account earning .5% interest compounded monthly. How much will you have in the account in .25 years?Salma wants to buy a bond that will mature to \$4500 in eight years. How much should she pay for the bond now if it earns interest at a rate of 3.5% per year, compounded continuously?One positive number is 8 times another number. Their difference is 70:Find the numbers.You invest 500 in an account that has an annual interest rate of 8%, compounded weekly for 12 years. What is the equivalent interest rate and how many times will the money be compounded? How much will you have?Grayson is going to invest in an account paying an interest rate of 4% compounded continuously. How much would Grayson need to invest, to the nearest dollar, for the value of the account to reach 15,000 in 5 years?