Question

You deposit $3000 in a bank account that pays 4% annual interest. Find the balance after 7 years if the interest is compounded quarterly.​

Answer 1

$3840.

Explanation:

First, write down the formula: I= PRT (Interest= Principle, rate, time). Then you multiply all of the numbers (3000x0.04x7). You get 840, but then you need to add it to the $3000 which already exist, therefor you get your answer of $3840.