Question

5) Abhasra invests $7,053 in a savings

account with a fixed annual interest rate of
3% compounded quarterly. What
will the account balance be after 4 years?

Answer 1

After 4 years the account balance will be $ 7,948.67.

Explanation:

Given that Abhasra invests $ 7,053 in a savings account with a fixed annual interest rate of 3% compounded quarterly, to determine what the account balance will be after 4 years, the following calculation must be performed:

7.053 x (1 + 0.03 / 4) ^ 4x4 = X

7,053 x 1.0075 ^ 16 = X

7.053 x 1.12699211 = X

7,948.67 = X

Therefore, after 4 years the account balance will be $ 7,948.67.