Keenan opened a savings account and deposited 1,000.00 as principal. The account earns 13% interest, compounded quarterly. What is the balance after 4 years?

Solution

Keenan opened a savings account and deposited 1, 000.00 as principal. The account earns 13% interest, compounded quarterly. What is the balance after 4 years?

Solution

Amount : 1668.17

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.13}{4})^{4 \cdot 4}

1000 (1 + \frac{0.13}{4})^{4 \cdot 4} = 1668.17252 \dots

Round to the nearest hundredth:

1668.17

Amount : 1668.17

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