Asked by Mike
Compound word problem
Sarah decides to open up her own bank account for her schooling and wants to save money. She decides to put $500.00 in the savings account she is opening. The amount she earns has 8% interest and it’s compounded quarterly. How much would Sarah have in her account after a two year span of saving money?
Sarah decides to open up her own bank account for her schooling and wants to save money. She decides to put $500.00 in the savings account she is opening. The amount she earns has 8% interest and it’s compounded quarterly. How much would Sarah have in her account after a two year span of saving money?
Answers
Answered by
Reiny
i = .08/4 = .02
n = 4(2) = 8 quarters
amount = 500(1.02)^8
= .....
n = 4(2) = 8 quarters
amount = 500(1.02)^8
= .....