194k views
4 votes
What interest is paid for three months on $960 at 2 74% annual interest paid quarterly?​

1 Answer

3 votes

Answer:

$6.64

Step-by-step explanation:

The applicable formula

A = p x ( 1+ r)^ n

A =amount after 3 months

p=principal amount: $960

r = interest rate : 2.74% per year or 2.74/12 per month =0.23% or 0.0023

n = 3 month

A = $960 x ( 1+ 0.0023) ^3

A =$960 x (1.0023)^3

A =$960 x 1.00691

A=$966.64

compound interest Earned

=$966.64 - $960

=$6.64

User MosesTheTool
by
5.9k points