| Use the regular compound interest
formula A = P ( 1 + r/n ) nt with P = 2535, r = 5.3/100 = 0.053, n = 4 ( not 1/4), and t = 3. Therefore, 
So, the balance after 3 years is approximately $2,971.71. |
Question 1
| An amount of $2,535.00 is deposited in a bank paying an annual interest rate of 5.3 % compounded quarterly. Find the balance after 3 years. |
Solution
| Use the regular compound interest
formula A = P ( 1 + r/n ) nt with P = 2535, r = 5.3/100 = 0.053, n = 4 ( not 1/4), and t = 3. Therefore,
So, the balance after 3 years is approximately $2,971.71. |
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