Deion puts 500.00 into an account to use for school expenses. The account earns 3% interest, compounded quarterly. How much will be in the account after 6 years?

Solution

Solution

Amount : 598.21

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.03}{4})^{4 \cdot 6}

500 (1 + \frac{0.03}{4})^{4 \cdot 6} = 598.20676 \dots

Round to the nearest hundredth:

598.21

Amount : 598.21

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