Question

Find the interest for one interest period. The account balance is $685, the APR is

5.1% and interest is quarterly. What is the amount of interest rounded to the
nearest cent?

Answer 1

Explanation:

step 1. A = P(1 + r/n)^nt. this is the compounding equation where n is the number of compounds, t is the time in years, and r is the rate.

step 2. A = 685(1 + .051/1)^(1(1/4))

step 3. A = 693.57.