Question

Fred invests $3000 at 4.39% compounded quarterly for 4 years. How much interest

will the investment yield?

Answer 1

$ 572.46

Explanation:

4.39 % = .0439 in decimal form

.0439/4 = periodic interest = .010975

periods = 4 years * 4 /year = 16 periods

value at end 3000 ( 1 + .010975)^16 = 3572.46

now subtract the original 3000 to find the gain