Find the compound amount for the deposit. Round to the nearest cent:
-$1100 at 3% compounded quarterly for 2 years
A) $1167.76
B) $1116.56
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, P is the principal amount ($1100), r is the annual interest rate (3% or 0.03), n is the number of times the interest is compounded per year (quarterly, so 4 times), and t is the time the money is invested for (2 years). Plugging in the values, A = 1100(1 + 0.03/4)^(4*2) = $1167.76.

Find the Compound Amount for the Deposit