Question

In second grade Eliza was given 500 from her grandparents this money was deposited into a savings account that earns 3% annual interest compounded quarterly find the account balance at graduation is there no other deposits or withdrawals in the account

Answer 1

$694.63

Explanation:

The formula is p(1+r/n)^tn. P, or the principal amount, is 500 dollars. R, or the rate as a decimal, is 0.03. N, or the number of times compounded yearly, is 4. T, or the time in years, is 11, since there are 11 years from grade 2 to grade 12. 12-2+1=11. Now, plug in the information given. 500(1+0.03/4)^4*11 = 500(1.0075)^44 = 694.63 dollars, rounded to the nearest cent.

Answer 2

account balance at graduation is 674.17

Explanation:

given data

deposit money P = 500

interest rate = 3 % compounded quarterly

we take time period = 10 year ( 2nd grade to 12 grade)

solution

we apply here compound interest formula that is

amount =
`P * (1+(r)/(4))^(4t)` ..................1

put here value and we get

amount =
`500 * (1+(0.03)/(4))^(4* 10)`

amount = 674.174

so account balance at graduation is 674.17