Austin invested 200 in an account paying an interest rate of 6.1% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 15 years?

Solution

Solution

Amount : 495.92

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.061}{4})^{4 \cdot 15}

200 (1 + \frac{0.061}{4})^{4 \cdot 15} = 495.91801 \dots

Round to the nearest hundredth:

495.92

Amount : 495.92

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