Question

The apr of emilio's savings account is 3.2%, and interest is compounded quarterly. if emilio does not withdraw or deposit any additional funds for an entire year, what will be the balance of his account after all the interest is paid for the year on a principal balance of $9300?

Answer 1

The answer is $9601.19.

Answer 2

Final value = Initial value × (mutiplier)^n

We have;
Initial value = 9300
Multiplier = 100%+3.2% = 103.2% = 1.032
Number of quarters in a year = 4

Substitute all values into the formula, we have

`Final Value = 9300 (1.032)^(4)=10548.77` rounded to two dp