Dana opened a savings account and deposited 800.00 as principal. The account earns 7% interest, compounded quarterly. What is the balance after 4 years?

Solution

Solution

Amount : 1055.94

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.07}{4})^{4 \cdot 4}

800 (1 + \frac{0.07}{4})^{4 \cdot 4} = 1055.94348 \dots

Round to the nearest hundredth:

1055.94

Amount : 1055.94

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