Find the compound amount for the deposit. Round to the nearest cent.
-$1100 at 3% compounded quarterly for 2 years
A) $1116.56
B) $1167.76
C) $1166.99
D) $1166.00

Question

Quizplus · Accepted Answer

The compound amount can be calculated using the formula A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. For this problem, P = $1100, r = 3% or 0.03, n = 4 (since interest is compounded quarterly), and t = 2 years. Plugging these values into the formula gives A = 1100(1 + 0.03/4)^(4*2) = $1167.76.

Find the Compound Amount for the Deposit