Question

PLEASE HELP kelly invested $1875 in a savings account which earns 3.35% interest compounded quarterly what will the account be worth in 7 years

Answer 1

The account will be worth $2368.20 in 7 years.

The compound interest formula is

$A=p(1+\frac{r}{n})^{n\times t}$

where p is the principal invested, r is the interest rate as a decimal number, n is the number of times the interest is compounded yearly, and t is the amount of time.

3.35% = 3.35/100 = 0.0335.

Using our information, we have:
$A=1875(1+\frac{0.0335}{4})^{4*7}$

which comes out to $2368.20.