Question

How much will accumulate in an account with an initial

depositof $100, and which earns 10% interest compounded quarterly
forthree years?

Answer 1

Answer: $134.49

Explanation:

The formula to calculate the accumulate amount in t years compounded quarterly :-

`A=P(1+(r)/(4))^(4t)`

, where P= initial deposit

r= rate of interest

t=time

As per given , we have

P= $100

r= 10%=0.10

t=3

Accumulate Amount =
`A=100(1+(0.10)/(4))^(4(3))`

`A=100(1+0.025)^(12)`

`A=100(1.025)^(12)`

`A=100(1.3448888)=134.48888\approx134.49`

Hence, the accumulate in an account after three years will be $134.49 .