Sarah invested 800 in an account paying an interest rate of 3.5% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 8 years?

Solution

Solution

Amount : 1057.22

Solution steps

Translate the problem into an equation:

A = 800 (1 + \frac{0.035}{4})^{4 \cdot 8}

800 (1 + \frac{0.035}{4})^{4 \cdot 8} = 1057.21548 \dots

Round to the nearest hundredth:

1057.22

Amount : 1057.22

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