Question

Mr. Chong deposits RM5 000 into a fixed deposit account with 4% interest rate compounded every 3 months for a period of 3 years. Calculate the amount of interest accrued after the third year。

fast please tq
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Answer 1

The interest is 634.13.

Explanation:

Amount deposit , P = 5000

Interest, R = 4 % so, R = 4/4 = 1 %

Time, T = 3 years quarterly

n = 3 x 4 = 12

Let the amount is A.

Use the formula of the compound interest

`A = P \left ( 1 + (R)/(100) \right )^n\\\\A = 5000 \left ( 1 + (1)/(100) \right )^(12)\\\\A = 5634.13`

So, the interest is

I = A - P = 5634.13 - 5000 = 634.13