Question

12) Melissa deposited $1,500.00 in an account that pays 6.5% interest compounded
quarterly. About what will the balance be in 7 years?
Equation:
A) $2,356.00
B) $937.00
C) $49,943.00
D) $21.00​

Answer 1

Answer:

A) $2356.00

Step-by-step explanation:

Principal, p = $1,500.00

Interest rate, r= 6.5%

Period, t = 7 years

compounded quarterly therefore, n = 4

Amount, A = P( 1 + r/n)^ n*t

A = 1500 ( 1 + 0.065/4)^ 4*7

A = 1500( 1 + 0.016)^28

A = 1500 ( 1.016) ^28

A = 1500 * 1.57

A = $2356.00