Eli opened a savings account and deposited 500.00 as principal. The account earns 10% interest, compounded quarterly. How much interest will he earn after 5 years?Round your answer to the nearest cent.

Lösung

El i o p e n e d a s a v in g s a cco u n t an d d e p os i t e d 500.00 a s p r in c i p a l . T h e a cco u n t e a r n s 10% 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 in t eres t w i ll h e e a r n a f t er 5 ye a rs ? R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Interest : 319.31

Schritte zur Lösung

Translate the problem into an equation:

819.30822 \dots = 500 + I

Löse nach

I, 819.30822 \dots = 500 + I : I = 319.31

Interest : 319.31