Austin invested 60,000 in an account paying an interest rate of 4.7% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 11 years?

Lösung

A u s t in in v es t e d 60, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 4.7% 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 h u n d re d d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 11 ye a rs ?

Amount : 100316.56

Schritte zur Lösung

Translate the problem into an equation:

A = 60000 (1 + \frac{0.047}{4})^{4 \cdot 11}

60000 (1 + \frac{0.047}{4})^{4 \cdot 11} = 100316.55862 \dots

Round to the nearest hundredth:

100316.56

Amount : 100316.56