Question

An amount of 1,500.00 is deposited in a bank paying an annual interest rate of 4.3% compounded quarterly. What is the balance after 6 years?

Answer 1

First, multiply the 1,500 by 4.3% to come up with $64.50 every three months (the question says compounded quarterly).

$64.50 x 4(quarters in a year) = $258.00 per year

$258.00 x 6 years = $1,548.00

$1,500.00 + $1,548.00 = $3,048.00 balance after six years