Question

Earl invested 6,000 in a money market account that pays 5% interest quarterly. How much money will he have in his account after 3 years?

Answer 1

Answer: $6964.53

Explanation:

Just did the test

Answer 2

The amount becomes $6964.53 after 3 years .

Explanation:

Formula

`Amount = P (1+(r)/(4))^(4t)`

Where P is the principle , r is the rate of interest in the decimal form and t is the time in the years .

As given

Earl invested 6,000 in a money market account that pays 5% interest quarterly for 3 years .

P = $6000

5% is written in the decimal form.

`= (5)/(100)`

= 0.05

r = 0.05

t = 3 years

Putting all the values in the formula

`Amount = 6000(1+(0.05)/(4))^(4* 3)`

`Amount = 6000(1+0.0125)^(12)`

`Amount = 6000* 1.16075452`

`Amount =\$ 6964.53\ (Approx)`

Therefore the amount becomes $6964.53 after 3 years .