Answer:
a. Mariah’s estimate of the time is too low
Step-by-step explanation:
To answer this question, we are going to need to input the values in the question into the compound interest formula:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, change 3.75% into a decimal:
3.75% -> -> 0.0375
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
Mariah's estimate of the time is too low. Your answer is A.