Question

Jim invests $1240 at a 3.6 interest rate in an account that is compounded quarterly. What is the value of the account after 6 years

Answer 1

$1507.84

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3.6%/100 = 0.036 per year,

then, solving our equation

I = 1240 × 0.036 × 6 = 267.84

I = $ 267.84

The simple interest accumulated

on a principal of $ 1,240.00

at a rate of 3.6% per year

for 6 years is $ 267.84.