How much will accumulate in an account with an initial deposit of $100, and which earns 10 percent interest compounded quarterly for three years? A)$107.69 B)$133.10 C)$134.49 D)$313.84 FV = PV (1 + r)²

Question

Quizplus · Accepted Answer

Using the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the amount accumulated, P is the initial deposit, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, P = $100, r = 0.1 (10%), n = 4 (compounded quarterly), and t = 3. Plugging in the values, we get:

A = 100(1 + 0.1/4)^(4*3) = $134.49

Therefore, the best choice is C.

How Much Will Accumulate in an Account with an Initial