Question

Mr. Ellis deposited $3,700 into a savings account for which interest is compounded quarterly at a rate of 1.84% how much interest will he earn after 6 years

Answer 1

A=p (1+I/k^kn

A future value ?
P principle 3700
i interest rate 0.0184
K compounded quarterly 4
N time 6 years

A=3,700×(1+0.0184÷4)^(4×6)
A=4,130.84

Interest earned=A-p
4,130.84−3,700=430.84

Hope it helps:-)

Answer 2

Answer:

The interest is equal to $\ 430.84$

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=6\ years\\ P=\ 3,700\\ r=0.0184\\n=4$  

substitute in the formula above  

$A=\ 3,700(1+\frac{0.0184}{4})^{4*6}=4,130.84$  

Find the interest

$I=A-P$

substitute

$I=\ 4,130.84-\ 3,700=\ 430.84$