Question

Find the amount in a account where $200 is invested at 3.5% compounded quarterly for a period of 3 years.

Answer 1

The amount after 3 years would be $221.74

Explanation:

Given:

Principal, P = $200

Rate of interest, r = 3.5%

Time, t = 3 years

Amount, A = ?

We know:

$A = P(1+\frac{r}{100})^t$

Substituting the value we get:

$A = 200(1+\frac{3.5}{100} )^3\\\\A = 200 X 1.108\\\\A = 221.74$

Therefore, the amount after 3 years would be $221.74