Bella is saving up money to buy a car. Bella puts 6,000.00 into an account which earns 8% interest, compounded quarterly. How much will she have in the account after 8 years?

Solution

Bella is saving up money to buy a car. Bella puts 6, 000.00 into an account which earns 8% interest, compounded quarterly. How much will she have in the account after 8 years?

Solution

Amount : 11307.24

Solution steps

Translate the problem into an equation:

A = 6000 (1 + \frac{0.08}{4})^{4 \cdot 8}

6000 (1 + \frac{0.08}{4})^{4 \cdot 8} = 11307.24355 \dots

Round to the nearest hundredth:

11307.24

Amount : 11307.24

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