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Popular Word Problems >

A bank features a savings account that has an annual percentage rate of 3.4% with interest compounded quarterly. Ashley deposits 2,000 into the account.What is the account balance after 4 years.

Solution

A bank f e a t u res a s a v in g s a cco u n t t ha t ha s an ann u a l p erce n t a g e r a t e o f 3.4% w i t h in t eres t co m p o u n d e d q u a r t er l y . A s h l ey d e p os i t s 2, 000 in t o t h e a cco u n t . Wha t i s t h e a cco u n t ba l an ce a f t er 4 ye a rs .

Solution

Amount : 2290.05

Solution steps

Translate the problem into an equation:

A = 2000 (1 + \frac{0.034}{4})^{4 \cdot 4}

2000 (1 + \frac{0.034}{4})^{4 \cdot 4} = 2290.04721 \dots

Round to the nearest hundredth:

2290.05

Amount : 2290.05

Popular Examples

Find the perimeter of a square tile knowing that its diagonal is 5 inches long. Round to the nearest tenth of a unit if necessary.what number is 15% of 40 Tony's age is 28 years younger than Mack. 5 years ago, Mack was 5 times as old as Tony.Pamela's age is three times Jiri's age. The sum of their ages is 72. What is Jiri's age?Nathan invested 3,500 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 hundred dollars, would be in the account after 19 years?