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miskamm [114]
2 years ago
9

I will mark you as the brainlest

Mathematics
1 answer:
tatyana61 [14]2 years ago
8 0

<u>Option D</u>

The total amount after 3 years is $ 1665.31

<h3><u>Solution:</u></h3>

Given that an investment of $1500 in an account paying 3.5% interest, compounded quarterly

<em><u>To find: total amount after 3 years</u></em>

<em><u>The formula for total amount using compound interest is given as:</u></em>

A=p\left(1+\frac{r}{n}\right)^{n t}

A = the future value of the investment/loan, including interest

P = the principal investment amount (the initial deposit or loan amount)

r = the annual interest rate (decimal)

n = the number of times that interest is compounded per unit t

t = the time the money is invested or borrowed for

Here in this problem,

p = $ 1500

r = 3.5 \% = \frac{3.5}{100} = 0.035

t = 3 years

n = 4 (since compounded quarterly)

<em><u>Substituting the values in above formula</u></em>,

\begin{aligned}&A=1500\left(1+\frac{0.035}{4}\right)^{4 \times 3}\\\\&A=1500(1+0.00875)^{12}\\\\&A=1500(1.00875)^{12}\\\\&A=1500 \times 1.110203=1665.31\end{aligned}

Thus total amount after 3 years is $ 1665.31. Option D is correct

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