Question

Alicia invested $32,000 into an account earning 3% annual interest compounded quarterly. She makes no other deposits and does not withdraw any money.
What is the balance of Alicia's account in 7 years?

A. $32,426.67
B. $39,446.78
C. $43,099.36
D. $57,795.56

Answer 1

The balance of Alicia' s account in 7 years
$= 32000 \times (1 + 3\% \div 4)^{7 \times 4}$

$= 32000 \times (1.0075 )^{28}$
=$39446.78
=B