Kelly Smith deposited $8,500 in an account which pays interest at the rate of 8% compounded quarterly.At the end of 3 years,Smith will have:

Question

Quizplus · Accepted Answer

Using the compound interest formula:
A = P(1 + r/n)^(nt)
where:
P = 8,500 is the principal
r = 8% is the annual interest rate
n = 4 because interest is compounded quarterly
t = 3 years

Plugging in the values, we get:
A = 8,500(1 + 0.08/4)^(4*3)
A = 8,500(1.02)^12
A = 10,780.05

Therefore, Kelly Smith will have $10,780.05 at the end of 3 years. Therefore, the best choice is B.

Kelly Smith Deposited $8,500 in an Account Which Pays Interest