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Which of the following is a balance for a single $1856 deposit in an account with an APR of 2.42% that compounds interest quarterly and is invested for six

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Using the formula for compound interest: A = P(1 + r/n)^(nt) where: A = the balance after the investment period P = the principal amount (the initial deposit) r = the annual interest rate (as a decimal) n = the number of times the interest is compounded per year t = the time the money is invested (in years) We can plug in the values given in the problem: P = $1856 r = 0.0242 (2.42% expressed as a decimal) n = 4 (quarterly compounding) t = 6/12 (6 months expressed as a fraction of a year) A = $1856(1 + 0.0242/4)^(4 * 6/12) A = $1856(1.00605)^2 A = $1931.

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