Question

Suppose that when your friend was born, your friend’s parents deposited $7,000.00 in an account paying 4.5 percent interest compounded quarterly. What will the account balance be after 15 years?

Answer 1

7000x 4.5 % =$ 315.00 interest quarterly
$315÷3=$105 monthly (interest)
$105 x 12 (months) = 1,260 (total of interest in 1 year)
1,260 × 15 (years) = 18,900 ( total of interest in 15 years )
18,900 +7,000= 25,900 Ans//