$$\mathrm { P } \left( 1 + \frac { \mathrm { r } } { \mathrm { k } } \right) ^ { \mathrm { kn } } \text { for } \mathrm { P } = \$ 480 , \mathrm { n } = 3 , \mathrm { r } = 5 \% , \mathrm { k } = 4$$
A) $550.28
B) $557.16
C) $77.16
D) $555.66

Question

Quizplus · Accepted Answer

The formula given is for compound interest compounded quarterly. Plugging in the values: P = 480, r = 0.05, k = 4, n = 3, we get 480 * (1 + 0.05/4)^(4*3) = $557.16.

A) $55028 B) $557

A) $55028
B) $557