Ian invested 90,000 in an account paying an interest rate of 2.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?

Solution

Ian invested 90, 000 in an account paying an interest rate of 2.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?

Solution

Amount : 107901.71

Solution steps

Translate the problem into an equation:

A = 90000 (1 + \frac{0.026}{4})^{4 \cdot 7}

90000 (1 + \frac{0.026}{4})^{4 \cdot 7} = 107901.71009 \dots

Round to the nearest hundredth:

107901.71

Amount : 107901.71

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