Alan puts 800.00 into an account to use for school expenses. The account earns 7% interest, compounded quarterly. How much will be in the account after 10 years?

Solution

Solution

Amount : 1601.28

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.07}{4})^{4 \cdot 10}

800 (1 + \frac{0.07}{4})^{4 \cdot 10} = 1601.27787 \dots

Round to the nearest hundredth:

1601.28

Amount : 1601.28

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