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Popular Word Problems >

Lillian is saving up money to buy a car. Lillian puts 8,000.00 into an account which earns 9% interest, compounded quarterly. How much will she have in the account after 4 years?

Solução

L i ll ian i s s a v in g u p m o n ey t o b u y a c a r . L i ll ian p u t s 8, 000.00 in t o an a cco u n t w hi c h e a r n s 9% in t eres t, co m p o u n d e d q u a r t er l y . Ho w m u c h w i ll s h e ha v e in t h e a cco u n t a f t er 4 ye a rs ?

Solução

Amount : 11420.97

Passos da solução

Translate the problem into an equation:

A = 8000 (1 + \frac{0.09}{4})^{4 \cdot 4}

8000 (1 + \frac{0.09}{4})^{4 \cdot 4} = 11420.97165 \dots

Round to the nearest hundredth:

11420.97

Amount : 11420.97

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