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1200$ invested at a rate of 3.5% compounded quarterly; 4 years

1 Answer

4 votes

Explanation:

1st year:

(1200 x 3.5 x 1) ÷ 100 = $42

2nd year:

(1242 x 3.5 x 1) ÷ 100= $43.47

3rd year:

(1285.47 x 3.5 x 1) ÷ 100= $44.99≈ $45

4th year:

(1330.47 x 3.5 x 1) ÷ 100= $46.56

Compound interest:

$(42 + 43.47 + 45 + 46.56)

=$ 177.03

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