Question

A new savings account of $750.00 earns 3% interest compounded quarterly compute the balance at the end of one year

Answer 1

$772.75

Step-by-step explanation:

For a principal, P compounded quarterly at an interest rate, r, we use the formula below to find the amount.

`A=P\mleft(1+(r)/(4)\mright)^(4t)`

Principal, P = $750.00

Interest Rate, r = 3%=0.03

Time, t = 1 years

Thus, we have:

`\begin{gathered} A=750(1+(0.03)/(4))^(4*1) \\ =772.75 \end{gathered}`

The balance at the end of one year is $772.75