15.0k views
4 votes
What will be the amount after three months if $3000 is invested each quarter at an interest rate of 0.57%?

1 Answer

5 votes

Final answer:

The future amount after three months of investing $3000 each quarter at an interest rate of 0.57% can be calculated using the formula for compound interest.

Step-by-step explanation:

To calculate the amount after three months of investing $3000 each quarter at an interest rate of 0.57%, we need to use the formula for compound interest:

A = P(1 + r/n)nt

Where:

  • A is the future amount
  • P is the principal amount ($3000)
  • r is the annual interest rate (0.57%)
  • n is the number of times interest is compounded per year (4 times because it's quarterly)
  • t is the number of years (3 months = 0.25 year)

Substituting the values into the formula:

A = 3000(1 + 0.0057/4)4(0.25)

Using a calculator, the amount after three months will be approximately $3038.01.

User Penleychan
by
8.7k points