Craig is saving up money to buy a car. Craig puts 8,000.00 into an account which earns 7% interest, compounded quarterly. How much will he have in the account after 3 years?

Solution

Craig is saving up money to buy a car. Craig puts 8, 000.00 into an account which earns 7% interest, compounded quarterly. How much will he have in the account after 3 years?

Solution

Amount : 9851.51

Solution steps

Translate the problem into an equation:

A = 8000 (1 + \frac{0.07}{4})^{4 \cdot 3}

8000 (1 + \frac{0.07}{4})^{4 \cdot 3} = 9851.51451 \dots

Round to the nearest hundredth:

9851.51

Amount : 9851.51

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