Colton and Eve deposit 9,448.00 into a savings account which earns 8% interest compounded quarterly. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?

Solution

Colton and Eve deposit 9, 448.00 into a savings account which earns 8% interest compounded quarterly. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?

Solution

Amount : 11982.35

Solution steps

Translate the problem into an equation:

A = 9448 (1 + \frac{0.08}{4})^{4 \cdot 3}

9448 (1 + \frac{0.08}{4})^{4 \cdot 3} = 11982.34847 \dots

Round to the nearest hundredth:

11982.35

Amount : 11982.35

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