Question

C) If you invest $5800 in a bank that gives you 13% interest compounded quarterly, how much do you

have at the end of the year?

Answer 1

$8,062

Explanation:

you open the bank account with $5,800. since the interest is calculated by quarter which is 3 months, you take the interest on the $5,800 and multiply the interest rate times 3. so it would be, $5,800 + $754 + 754 + 754 = 8,062. the $754 amount is calculated by multiplying 5,800 dollars * 13% or .13