Brooke earned 10,000.00 from a summer job and put it in a savings account that earns 15% interest compounded quarterly. When Brooke started college, she had 34,669.00 in the account which she used to pay for tuition. How long was the money in the account?

Solution

Brooke earned 10, 000.00 from a summer job and put it in a savings account that earns 15% interest compounded quarterly. When Brooke started college, she had 34, 669.00 in the account which she used to pay for tuition. How long was the money in the account?

Solution

Time : 1.72

Solution steps

Translate the problem into an equation:

44669 = 34669 (1 + \frac{0.15}{4})^{4 t}

Solve for

t, 44669 = 34669 (1 + \frac{0.15}{4})^{4 t} : t = 1.72

Time : 1.72

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