Problema Solution
savings account has balance of $4001. after 5 yrs. what will be amount of interest be at 12% compounded quarterly?
Answer provided by our tutors
Rate: 12%/4 = 3%
5 years = 20 periods
The account after 5 yrs = $4001*(1+3%)^20 = $7226.25
The amount of interest = $7226.25- $4001 = $3225.25