Question

Suppose a software company gives Zachary a college grant of $32,000. Zachary puts 85

percent of the grant into a savings account that pays 1.62 percent interest compounded
quarterly. After 3.5 years, how much money will be in his account? Round your answer to the
nearest cent.

Answer 1

So he puts $27,200 in the savings account. After 14 increments of compounding (at 1.62%), I believe that the amount in the account would be $34,062.58