Question

$3100.00 is invested in an

account with a 3.2% interest rate
that is compounded quarterly.
How much money is in the
account at the end of one year?
A. $3,200.40
C. $3,124.80
B. $5,018.78
D. $3,496.80

Answer 1

B) $3124.80

Explanation:

We know the formula to finding the interest is:

Interest = Principal x Rate x Time

Put in the numbers:

Interest = $
`(3100)/(4)` x 3.2% x 1 year

Then calculate:

Interest = $775 x
`(3.2)/(100)` x 1 year

Interest = $24.8 x 1 year + $3100

Interest = $24.8 + $3100

Interest = $3124.80

Therefore, the answer is B) $3124.80.