Question

if on the first of january a savings account has a balance of $3,200, what amount will be there in this account after three years if the bank gives 6% per year interest compounded quarterly? (assume that there are no deposits or withdraws of money during these three years.

Answer 1

find the amount after one year $1,000 invested at 6% per year if interest is a simple interest.

compound interest compounded quarterly.

Answer 2

3200.00 x (1.015)^12 = $3825.98 for quarterly compound interest.

For your second (simple interest) question, just increase the initial deposit by 6%.