A savings account earns interest with an APR of 2.94%, compounded quarterly. If $3,942 is saved in this account at the beginning of 2019, what is the value of the account at the beginning of 2027? Use two decimal place accuracy.

Answer 1

The quarterly interest rate is 2.94% / 4 = 0.735%.
The number of quarters from the beginning of 2019 to the beginning of 2027 is 8 * (2027 - 2019) = 8 * 8 = 64 quarters.
The value at the beginning of 2027 is therefore $3,942 * (1 + 0.735%)^64 = $3,942 * 1.00735^64 = $3,942 * 1.57844 ≈ $6,217.72. Answer: \boxed{6,217.72}.