Mackenzie puts 300.00 into an account to use for school expenses. The account earns 12% interest, compounded quarterly. How much will be in the account after 5 years?

Solution

Solution

Amount : 541.83

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.12}{4})^{4 \cdot 5}

300 (1 + \frac{0.12}{4})^{4 \cdot 5} = 541.83337 \dots

Round to the nearest hundredth:

541.83

Amount : 541.83

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