Question
How much will a savings account earn if the APY is 5.00% with a starting deposit of $100 with the interest given to the account quarterly? How much will it earn for the first quarter? First year?
Answers
oobleck
1st q: 100 * .05/4
1st yr: 100(1 + .05/4)^4 - 100
1st yr: 100(1 + .05/4)^4 - 100