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Jason's savings account has a balance of $2179. After 5 years, what will the amount of interest be at 6% compounded quarterly?

a.

$760.80

c.

$755.80

b.

$65.37

d.

$746.80

Verified Answer :

briyonalittle19

Jason's savings account has a balance of $2179. After 5 years, what will the amount of interest be at 6% compounded quarterly?  
C. $755.80

Answer:

The amount of the interest is $755.80 .

Option (c) is correct .

Step-by-step explanation:

Formula

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Amount = Principle + Interest

Where P is the principle , r is the rate of interest in the decimal form and t is the time in years .

As given

Jason's savings account has a balance of $2179 .

The account is compounded quarterly at the rate of 6% for 5 years .

P = $2179

6% is written in the decimal form

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= 0.06

r = 0.06

t = 5 years

Put all the values in the formula

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Amount = $ 2934.80 (Approx)

Thus

$2934.80 = $2179 + Interest

Interest = $2934.80 - $2179

Interest = $ 755.80

Therefore the amount of the interest is $755.80 .

Option (c) is correct .

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