Amanda invests 9200 in a new savings account which earns 3.4% annual interest, compounded quarterly. What will be the value of her investment after 4 years? Round to the nearest cent.

Solution

Solution

Amount : 10534.22

Solution steps

Translate the problem into an equation:

A = 9200 (1 + \frac{0.034}{4})^{4 \cdot 4}

9200 (1 + \frac{0.034}{4})^{4 \cdot 4} = 10534.21718 \dots

Round to the nearest hundredth:

10534.22

Amount : 10534.22

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