Answer:
Step-by-step explanation:
Initial amount deposited in the certificate of deposit is $15000 This means that the principal so
P = 15000
It was compounded quarterly. This means that it was compounded 4 times in a year. So
n = 4
The rate at which the principal was compounded is 7.5%. So
r = 7.5/100 = 0.075
It was compounded for 2 years. So
t = 2
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 15000 (1+0.075/4)^4×2
A = 15000(1.01875)^8 = $17403
The interest would be
17403 - 15000 = $2403
