Suppose you invest 3,500 in a savings account that earns 7% interest, compounded quarterly. How much money would you have after 6 years? Round your answer to the nearest penny

Solution

Suppose you invest 3, 500 in a savings account that earns 7% interest, compounded quarterly. How much money would you have after 6 years? Round your answer to the nearest penny

Solution

Amount : 5307.55

Solution steps

Translate the problem into an equation:

A = 3500 (1 + \frac{0.07}{4})^{4 \cdot 6}

3500 (1 + \frac{0.07}{4})^{4 \cdot 6} = 5307.54975 \dots

Round to the nearest hundredth:

5307.55

Amount : 5307.55

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