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Mandarinka [93]
2 years ago
7

If you invest $1,000 in an account paying 4% interest compounded quarterly,lhow much money will you have after 3 years? A.)$1,50

0 B.)$1,005 C.)$1,220 D.)$1,225
Mathematics
1 answer:
polet [3.4K]2 years ago
7 0

Answer:

C is closest to the actual result, $1126.03.

Step-by-step explanation:

Use the Compound Amount formula:  A = P(1 + r/n)^(nt), where:

 P is the original principal; r is the interest rate as a decimal fraction; n is the number of compounding periods per year, and t is the number of years.

Then we have A = $1000(1 + 0.04/4)^(4*3), or

                            = $1000(1.01)^12  =  $1126.03

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