Question

An amount of $2,535.00 is deposited in a bank paying an annual interest rate of 5.3 % compounded quarterly. find the balance after 3 years.

a. $29,687.8
b. $2,968.78
c. $2,845
d. $2,000

Answer 1

The balance after 3 years with a compound interest rate of 5.3% compounded quarterly on a deposit of $2,535.00 is $2,845.32.

Step-by-step explanation:

To calculate the balance after 3 years, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:

• A is the final amount
• P is the principal amount (initial deposit)
• r is the annual interest rate (as a decimal)
• n is the number of times interest is compounded per year
• t is the number of years

In this case, P = $2,535.00, r = 0.053 (5.3% as a decimal), n = 4 (compounded quarterly), and t = 3. Plugging in these values, we get:

A = $2,535.00 * (1 + 0.053/4)^(4*3) = $2,845.32

Therefore, the balance after 3 years is $2,845.32.