Dylan invested 93,000 in an account paying an interest rate of 3% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 17 years?

Solution

Dy l an in v es t e d 93, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 3% co m p o u n d e d q u a r t er l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t ce n t, w o u l d b e in t h e a cco u n t a f t er 17 ye a rs ?

Amount : 154577.64

Solution steps

Translate the problem into an equation:

A = 93000 (1 + \frac{0.03}{4})^{4 \cdot 17}

93000 (1 + \frac{0.03}{4})^{4 \cdot 17} = 154577.64120 \dots

Round to the nearest hundredth:

154577.64

Amount : 154577.64