Mathematics: Swanton Savings Bank pays 5.5% interest compounded quarterly on a regular savings account. John deposited $4400 in regular savings accounts for 1.5 years. How much interest did he earn?

The slope for this answer is 4/-5...

Swanton Savings Bank pays 5.5% interest compounded

joelpimentel

08.02.2022

$375.71

Step-by-step explanation:

Given that:

Rate of interest = 5.5% compounded quarterly

Time = 1.5 years

Principal amount deposited in savings account = 1.5 years

To find:

Interest earned = ?

Solution:

Formula for amount with interest compounding quarterly:

$A = P(1+\dfrac{r}{4\times 100})^{4t}$

Putting the values:

$A = 4400(1+\dfrac{5.5}{4\times 100})^{4\times 1.5}\\\Rightarrow 4400\times 1.01375^6\\\Rightarrow 4400\times 1.085\\\Rightarrow \$ \bold{4775.71}$

Interest earned = Amount - Principal

Interest earned = 4775.70 - 4400 = $375.71

0,0(0 оценок)