SOLUTION: How do you do this problem? You decide to get an after school job and your first paycheck is for $500. Your parents make you put the money in a savings account that pays 3.8%

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: How do you do this problem? You decide to get an after school job and your first paycheck is for $500. Your parents make you put the money in a savings account that pays 3.8%       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1103014: How do you do this problem?
You decide to get an after school job and your first paycheck is for $500. Your parents make you put the money in a savings account that pays 3.8% interest and is compounded quarterly. After 3 years, how much money would you have?
Answer by josgarithmetic(39623) About Me  (Show Source):
You can put this solution on YOUR website!
Three years will be 3%2A4=12 compounding periods a a rate of 3.8%2F4=0.95 percent EACH compounding period.

Balance after the three years:
500%2A%281%2B0.0095%29%5E12
500%281.0095%29%5E12
highlight%28560.07%29