Question

Arnold made a deposit of $720 to open a savings account that pays interest at an annual rate of 5% compounded quarterly. If he keeps his original deposit in the savings account and has paid interest for 4/4 how much interest will he earn in the first year? What is the effective rate of interest that deposit will earn to the nearest hundredth percent?

Answer 1

P=$750

rates=5 percent

Time=1

so 750 multiple by 5 multiple by 1 divide by 100 equal 37.5