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

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