Question

In second grade Eliza was given 500 from her grandparents this money was deposited into a savings account that earns 3% annual interest compounded quarterly find the account balance at graduation is there no other deposits or withdrawals in the account

Answer 1

Answer:

account balance at graduation is 674.17

Step-by-step explanation:

given data

deposit money P  =  500

interest rate = 3 % compounded quarterly

we take time period = 10 year ( 2nd grade to 12 grade)

solution

we apply here compound interest formula that is

amount = $P \times (1+\frac{r}{4})^{4t}$      ..................1

put here value and we get

amount = $500 \times (1+\frac{0.03}{4})^{4\times 10}$

amount = 674.174

so account balance at graduation is 674.17