Question

find the value of 1500 deposited for 15 years in an account paying 3.75% annual interest compounded quarterly.

Answer 1

$2625.69

Explanation:

Formula for quarterly compounded interest is A = P (1 + r/4)^4t

Where P is initial amount, t is time in years, r is rate in decimals.

A = 1500 (1 + 0.0375/4)^(4 X 15)

= $2625.69