Question

How much will $850 amount to be in three years if it is invested at 8% interest compounded quarterly for 3 years? A. $886.47 B. $952.43 C. $1078.01 D. $1168.15

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\ 850\\ r=rate\to 8\%\to \frac{8}{100}\to &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, so four times} \end{array}\to &4\\ t=years\to &3 \end{cases}$