Kiara opened a savings account and deposited 100.00 as principal. The account earns 5% interest, compounded quarterly. What is the balance after 3 years?

Solution

Solution

Amount : 116.08

Solution steps

Translate the problem into an equation:

A = 100 (1 + \frac{0.05}{4})^{4 \cdot 3}

100 (1 + \frac{0.05}{4})^{4 \cdot 3} = 116.07545 \dots

Round to the nearest hundredth:

116.08

Amount : 116.08

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