Question

tom invests $2,000 at 3.25% compound quarterly for 3 years. How much is in his account at the end of 3 years?

Answer 1

Question

Given that interest rate is $i = 3.25\%$, amount is $A = \$2,000$, time of deposit is $t = 3$ years.

Compound: quarterly.

Interest compound quarterly for 3 years:

$$P = A \cdot \left(1 + \frac {i}{4}\right) ^ {4 t} = \$2,000 \cdot \left(1 + \frac {0.0325}{4}\right) ^ {12} = \$2,204.$$

Answer: \$2,204.