Question

Craig invests $200 into an account with a 2.7% interest rate that is compounded quarterly. How much money will he have in this account if he keeps it for 10 years? Round your answer to the nearest dollar.

Answer 1

$262

Explanation:

F = P(1 + r/n)^(nt)

F = 200(1 + 0.027/4)^(4 × 10)

F = 261.75...

Answer: $262