Aaliyah opened a savings account and deposited 1,000.00 as principal. The account earns 15% interest, compounded quarterly. What is the balance after 5 years?

Solution

Aaliyah opened a savings account and deposited 1, 000.00 as principal. The account earns 15% interest, compounded quarterly. What is the balance after 5 years?

Solution

Amount : 2088.15

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.15}{4})^{4 \cdot 5}

1000 (1 + \frac{0.15}{4})^{4 \cdot 5} = 2088.15199 \dots

Round to the nearest hundredth:

2088.15

Amount : 2088.15

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