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fredd [130]
2 years ago
5

brenda savings account principal 850, 5.5% annual interest rate and is compounded quarterly for 1 year. what is the compound int

erest?
Mathematics
1 answer:
Sedbober [7]2 years ago
3 0
A = $ 861.69

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 5.5%/100 = 0.055 per year,
putting time into years for simplicity,
1 quarters ÷ 4 quarters/year = 0.25 years,
then, solving our equation

A = 850(1 + (0.055 × 0.25)) = 861.6875 
A = $ 861.69

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 850.00
at a rate of 5.5% per year
for 0.25 years (1 quarters) is $ 861.69.
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