Question

Francisco invested $5,000 into an account that earns 3% compounded quarterly. How many times will Francisco earn interest after keeping the money in the account for 5 years?

Answer 1

$7,789.84

Explanation:

You would use this this formula for compound interest where the account is compounded quarterly.

`amount * (1 + {multiplier}^(3) )^(5)`

So you would need to substitute values from the question in.

`5000 * ( {1.03}^(3) )^(5)`

And this gives the answer $7,789.84