Colton and Eve deposit 9,448.00 into a savings account which earns 8% interest compounded quarterly. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?

Soluzione

C o lt o n an d E v e d e p os i t 9, 448.00 in t o a s a v in g s a cco u n t w hi c h e a r n s 8% in t eres t co m p o u n d e d q u a r t er l y . T h ey w an t t o u se t h e m o n ey in t h e a cco u n t t o g o o n a t r i p in 3 ye a rs . Ho w m u c h w i ll t h ey b e ab l e t o s p e n d ?

Amount : 11982.35

Fasi della soluzione

Translate the problem into an equation:

A = 9448 (1 + \frac{0.08}{4})^{4 \cdot 3}

9448 (1 + \frac{0.08}{4})^{4 \cdot 3} = 11982.34847 \dots

Arrotondare all' hundredth più vicino:

11982.35

Amount : 11982.35