You deposit $1,500 in an account at the Lifelong Trust Savings and Loan that pays 6% per year compounded quarterly. By how much will your deposit have grown after 8 years Round the answer to the nearest cent. ?
A)$3,165.49
B) $915.39
C) $915.49
D) $2,415.49
E) $912.39

Question

You deposit $1,500 in an account at the Lifelong Trust Savings and Loan that pays 6% per year compounded quarterly. By how much will your deposit have grown after 8 years  Round the answer to the nearest cent. ?
A)$3,165.49
B) $915.39
C) $915.49
D) $2,415.49
E) $912.39

Quizplus · Accepted Answer

The future value of the deposit can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = $1,500, r = 0.06, n = 4, and t = 8. The future value A is $2,415.49, so the growth is $2,415.49 - $1,500 = $915.49.

You Deposit $1,500 in an Account at the Lifelong Trust