Davon invests 5,151 in a retirement account with a fixed annual interest rate of 2% compounded 4 times per year. What will the account balance be after 20 years?

Solution

Davon invests 5, 151 in a retirement account with a fixed annual interest rate of 2% compounded 4 times per year. What will the account balance be after 20 years?

Solution

Amount : 7676.73

Solution steps

Translate the problem into an equation:

A = 5151 (1 + \frac{0.02}{4})^{4 \cdot 20}

5151 (1 + \frac{0.02}{4})^{4 \cdot 20} = 7676.73396 \dots

Round to the nearest hundredth:

7676.73

Amount : 7676.73

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