Question

A credit card charges a 14% annual nominal interest rate and has a balance of $500.

if no payments are made and the interest is compounded quarterly, which expression could be used to calculate the account balance, in dollars, in 3 years.​

Answer 1

C

Explanation:

A = P [1 + (r / n)]ⁿᵇ

A = 500 [1 + (0.14 / 4)]³ ˣ ⁴

A = 500 [1 + (0.14 / 4)]¹²