Question

You deposit $7,900 in an account that pays 1.29% annual interest. Find the balance after 5 years when theinterest is compounded quarterly.

•$10,293.78

•$8,132.89

•$9,378.23

•$8,425.47

Answer 1

8,425.47

Explanation:

Total Principal: $7,900.00

Total Interest: $525.47

interest rate of 1.29% compound quarterly is equivalent to annual rate of 1.296%