Ian invested 90,000 in an account paying an interest rate of 2.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?

Lösung

I an in v es t e d 90, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 2.6% 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 d o ll a r, w o u l d b e in t h e a cco u n t a f t er 7 ye a rs ?

Amount : 107901.71

Schritte zur Lösung

Translate the problem into an equation:

A = 90000 (1 + \frac{0.026}{4})^{4 \cdot 7}

90000 (1 + \frac{0.026}{4})^{4 \cdot 7} = 107901.71009 \dots

Round to the nearest hundredth:

107901.71

Amount : 107901.71