Question

Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.

Answer 1

A = $3136.51875

Step-by-step explanation:

Given that :

The principal = $3,000.00

Rate = 9%

Time = 6 months

Since the amount is compounded quarterly;

r = 9/4 = 2.25 %

t = 6 months = 2 quarter

Using the formula:

A = P(1+r/100)^t

A = 3000.00(1+ 2.25/100)^2

A = 3000.00( 1+ 0.0225)^2

A = 3000.00 (1.0225)^2

A = 3000.00 (1.04550625)

A = $3136.51875