Question

A savings account deposit of $8,500 is made on April 1 and kept on deposit for 3 months. The account earns 5.4% annual interest, compounded quarterly. What amount of interest is earned on the deposit for three months?

Answer 1

The amount of interest earned on the deposit for three months would be calculated using the compound interest formula. This formula takes into account the principal, the rate of interest, and the length of time the deposit is kept on deposit. Using these factors, the amount of interest earned on the deposit for three months would be approximately $139.14.

Explanation: