Question

How much interest will be earned on a $3200 investment at 7% compounded quarterly for 5 years? State your answer in terms of dollars, rounded to the nearest cent, but do not include a $ sign or the word "dollars" with your response.

Answer 1

4527.29

Explanation:

P=3200(1+0.07/4)^4(5)

Formula

P=A(1+R/N) ^nt

A= amount=$3200

R=rate7% convert to decimal 0.07

T=time 5 years

N= quarterly(4)

Yearly would be 12

Daily 365 and

continuously would be a different formula