Stan’s savings account has a balance of $2257. after 5 years, what will the amount of interest be at 10% compounded quarterly? a. $1432.36 c. $112.85 b. $1446.36 d. $1441.36

$1441.36

Step-by-step explanation:

Interest = $1432.36 , right option is (a).

Step-by-step explanation:

We have given,

Balance in account = $2257

We need to calculate compound interest after 5 years compounded quarterly.

Interest rate = 10%

Using formula,

Here , P =$2257 , t= 5 years , n= 3 and r = 10% =0.1

So,

or A = 3690.94

Interest = A - P = 3690.94 - 2257 = 1433.94 ≈ 1432.36

Hi there:)
First find the future value
The formula is
A=p (1+r/k)^kt
A future value?
P present value 2257
R interest rate 0.10
K compounded quarterly 4
T time 5 years
A=2,257×(1+0.10÷4)^(4×5)
A=3,698.36

Now find the amount of interest
I=A-p
I=3,698.36−2,257
I=1,441.36

Hope it helps