If Vu deposits $13,500 in a savings account that earns 1.5% interest per year compounded quarterly, how much money can she expect to be in the account in 3 years? Round your answer to two decimal places.
A) $14,107.50
B) $620.19
C) $12,904.87
D) $14,120.19

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where P is the principal amount ($13,500), r is the annual interest rate (0.015), n is the number of times interest is compounded per year (4), and t is the number of years (3). Plugging in these values gives A = 13500(1 + 0.015/4)^(4*3) = $14,120.19.

If Vu Deposits $13,500 in a Savings Account That Earns