Kirk puts 6,000.00 into an account to use for school expenses. The account earns 4% interest, compounded quarterly. How much will be in the account after 4 years?

Solution

Kirk puts 6, 000.00 into an account to use for school expenses. The account earns 4% interest, compounded quarterly. How much will be in the account after 4 years?

Solution

Amount : 7035.47

Solution steps

Translate the problem into an equation:

A = 6000 (1 + \frac{0.04}{4})^{4 \cdot 4}

6000 (1 + \frac{0.04}{4})^{4 \cdot 4} = 7035.47186 \dots

Round to the nearest hundredth:

7035.47

Amount : 7035.47

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