Greta opened a savings account and deposited 5,996.00 as principal. The account earns 14.38% interest, compounded quarterly. What is the balance after 5 years?

Solution

Greta opened a savings account and deposited 5, 996.00 as principal. The account earns 14.38% interest, compounded quarterly. What is the balance after 5 years?

Solution

Amount : 12151.71

Solution steps

Translate the problem into an equation:

A = 5996 (1 + \frac{0.1438}{4})^{4 \cdot 5}

5996 (1 + \frac{0.1438}{4})^{4 \cdot 5} = 12151.71342 \dots

Round to the nearest hundredth:

12151.71

Amount : 12151.71

Popular Examples

What is the circumference of a circular swimming pool with a diameter of 6 ½ feet Eight times the sum of a number and 6 is equal to 5 .Find the CIRCUMFERENCE of the circle with a diameter of 21ft QUESTION Your friend can complete the shopping for the construction supplies three times faster than you. Together you can do the shopping in 2 hours. How long does it take for your friend to complete the shopping alone?Abdul opened a savings account and deposited 400.00 as principal. The account earns 2% interest, compounded monthly. What is the balance after 5 years?