Question

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)

$807.58

$132.58

$121.50

$130.99

Answer 1

A = 675(1 + 0.03/4)^(4·6) = 675(1.0075)^24 ≈ 807.58, so interest ≈ 807.58 − 675 = $132.58.