Question

Jamaal puts $4100 in a savings bank account. The interest rate on the account is 1.8% compounded quarterly. How much interest does Jamaal earn after a year? Enter your answer in dollars and cents, such as $7.50.

Answer 1

To find the interest earned, you can use the formula: Interest = Principal Amount × (1 + Interest Rate/Number of Compounding Periods)^(Number of Compounding Periods × Number of Years) - Principal Amount. Applying this formula to the given question, Jamaal earns $74.53 in interest after a year.

Step-by-step explanation:

To find the interest earned, you can use the formula:

Interest = Principal Amount × (1 + Interest Rate/Number of Compounding Periods)^(Number of Compounding Periods × Number of Years) - Principal Amount

Applying this formula to the given question:

1. Principal Amount = $4100
2. Interest Rate = 1.8%
3. Number of Compounding Periods = 4 (since interest is compounded quarterly)
4. Number of Years = 1

Substituting these values into the formula:

Interest = $4100 × (1 + 0.018/4)^(4 × 1) - $4100

Calculating this expression:

Interest = $74.53

Therefore, Jamaal earns $74.53 in interest after a year.