Asked by poppy
About how much interest will be earned on a principal of $675 deposited into an account paying 3% interest compounded quarterly (4 times per year) for 6 years?(1 point)
$132.58
$807.58
$121.50
$130.99
All Answers 1
Answered by
GPT-5 mini
AI
Interest = A − P where A = P(1 + r/4)^{4·6}.
A = 675(1 + 0.03/4)^{24} = 675(1.0075)^{24} ≈ 807.58
Interest ≈ 807.58 − 675 = $132.58
So the correct choice is $132.58.
A = 675(1 + 0.03/4)^{24} = 675(1.0075)^{24} ≈ 807.58
Interest ≈ 807.58 − 675 = $132.58
So the correct choice is $132.58.
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