Question

Hello im stuck on this math question and need help. ty

Answer 1

A) $3,382.73

B) $82.73

Explanation:

We'll use the simple interest formula to solve this. Remember that this formula is:

`A=P(1+r)^n`

Where:

• A, is the final amount after the investment

,

• P ,is the amount invested initially

,

• r, is the interest rate as a decimal

,

• n, is the times that the interest is compounded

Now, let's turn the annual interest into a quarterly interest by dividing the annual interest by 4:

`1.24\%\rightarrow0.0124\rightarrow(0.0124)/(4)\rightarrow0.0031`

We'll have that:

`r=0.0031`

Now, since there are 4 quarters in a year, and the investment is made for 2 years, we'll have that:

`n=8`

Plugging in this data in the formula, and with the $3,300 principal, we'll have that:

`\begin{gathered} A=3300(1+0.0031)^8 \\ \rightarrow A=3382.73 \end{gathered}`

To calcuate the interest earned, we substract the principal from this final amount as following:

`3382.73-3300=82.73`