$1,500 is invested in an account with a 3% interest rate that is compounded quarterly. how much money is in…

$1,500 is invested in an account with a 3% interest rate that is compounded quarterly. how much money is in the account at the end of one year? $? round to the nearest cent.

$1,500 is invested in an account with a 3% interest rate that is compounded quarterly. how much money is in the account at the end of one year? $? round to the nearest cent.

Answer

Answer:

$1545.68$

Explanation:

Step1: Identify compound - interest formula

$A = P(1+\frac{r}{n})^{nt}$

Step2: Define the variables

$P = 1500$, $r=0.03$, $n = 4$, $t = 1$

Step3: Substitute values into formula

$A=1500(1 +\frac{0.03}{4})^{4\times1}$

Step4: Calculate inside the parentheses

$1+\frac{0.03}{4}=1 + 0.0075=1.0075$

Step5: Calculate the exponent

$(1.0075)^{4}=1.030339$

Step6: Multiply by the principal

$A = 1500\times1.030339=1545.5085\approx1545.68$