Find the compound interest earned by the deposit. Round to the nearest cent.
-$\$ 4000$ at $4 \%$ compounded quarterly for $\frac{3}{4}$ year
A) $\$ 121.20$
B) $\$ 499.46$
C) $\$ 480.00$
D) $\$ 119.41$

Question

Quizplus · Accepted Answer

The formula for compound interest is $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 4000 $, $ r = 0.04 $, $ n = 4 $, and $ t = \frac{3}{4} $. Plugging in these values, the compound interest is calculated as $ 4000 \left(1 + \frac{0.04}{4}\right)^{4 \times \frac{3}{4}} - 4000 \approx 121.20 $.

Find the Compound Interest Earned by the Deposit $4000\$ 4000$4000 At 4%4 \%4%

Find the Compound Interest Earned by the Deposit $\$ 4000$ At $4 \%$