If Gabriel deposits $18,500 in a savings account that earns 3.1% interest per year compounded quarterly, how much money can he expect to be in the account in 2 years? Round your answer to two decimal places.
A) $19,647.00
B) $1,822,882.13
C) $19,678.60
D) $17,383.63

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where P is the principal amount ($18,500), r is the annual interest rate (0.031), n is the number of times interest is compounded per year (4), and t is the number of years (2). Plugging in these values, A = 18500(1 + 0.031/4)^(4*2) = 19,678.60.

If Gabriel Deposits $18,500 in a Savings Account That Earns