Mr. Campbell has 700 with interest rate compounded QUARTERLY at 5% per YEAR for 10 years. What formula you will use to solve the total amount in the account?

Solution

Solution

Amount : 1150.53

Solution steps

Translate the problem into an equation:

A = 700 (1 + \frac{0.05}{4})^{4 \cdot 10}

700 (1 + \frac{0.05}{4})^{4 \cdot 10} = 1150.53362 \dots

Round to the nearest hundredth

Amount : 1150.53

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