Final answer:
After 3 years, Omar's investment of $1100 in a CD with an annual interest rate of 1.37% compounded quarterly will grow to $1146.31, and the total interest earned will be $46.31.
Step-by-step explanation:
Omar invested his $1100 bonus in a 3-year certificate of deposit (CD) with an annual interest rate of 1.37% compounded quarterly. To calculate the final amount in Omar's account after 3 years, we use the compound interest formula:
A = P(1 + r/n)^(nt)
Substituting the values:
A = $1100(1 + 0.0137/4)^(4*3)
A = $1100(1 + 0.003425)^(12)
A = $1100(1.003425)^12
A = $1100 * 1.0421
A = $1146.31 (rounded to the nearest cent)
To find the total interest earned:
Interest = Final amount - Principal
Interest = $1146.31 - $1100
Interest = $46.31 (rounded to the nearest cent)
The calculations above show that Omar's investment will grow to $1146.31, and the total interest earned after 3 years will be $46.31.