Use the compound interest table to calculate the compound interest on Corrine s principal of $3,000 at 6% compounded quarterly for two years.
A) $285.39
B) $379.48
C) $1,781.54
D) $3,379.49

Question

Use the compound interest table to calculate the compound interest on Corrine s principal of $3,000 at 6% compounded quarterly for two years.  
A) $285.39 
B) $379.48 
C) $1,781.54 
D) $3,379.49

Quizplus · Accepted Answer

Using the compound interest table, we find the factor for 6% compounded quarterly for two years to be 1.1262. We then multiply this factor by Corrine's principal of $3,000 to get a final amount of $3,378.48. Subtracting her initial principal of $3,000, we get a total interest of $378.48, which rounds to $379.48 when rounded to the nearest cent. Therefore, the answer is B.

Use the Compound Interest Table to Calculate the Compound Interest