The Garcias are saving up to go on a family vacation in 5 years. They invest 3200 into an account with an annual interest rate of 1.46% compounded quarterly.How much interest is earned on the Garcias' investment after 5 years?

Lösung

T h e G a rc ia s a re s a v in g u p t o g o o n a f ami l y v a c a t i o n in 5 ye a rs . T h ey in v es t 3200 in t o an a cco u n t w i t h an ann u a l in t eres t r a t e o f 1.46% co m p o u n d e d q u a r t er l y . Ho w m u c h in t eres t i s e a r n e d o n t h e G a rc ia s^{'} in v es t m e n t a f t er 5 ye a rs ?

Interest : 241.88

Schritte zur Lösung

Translate the problem into an equation:

3441.88025 \dots = 3200 + I

Löse nach

I, 3441.88025 \dots = 3200 + I : I = 241.88

Interest : 241.88