Question

An amount of $2,535.00 is deposited in a bank paying an annual interest rate of 5.3 % compounded quarterly. Find the balance after 3 years.
please give me calculation for getting answer

Answer 1

Let Principal= $ 2535
                 r= 5.3/100
                 t=3
We know the interest is compounded quarterly
 A = P(1+(r/4 )/100)^4t
    =2535(1+5.3/400)^12
    = 2535*1.01325^12
    = 2535 * 1.1711
    = 2968.77
The balance after 3 years is 2968.77

Answer 2

P= $2535
r = 5.3%
t = 3 years
n = 4

$A=P(1+r/n)^{nt} = 2535(1+0.053/4)^{4*3} = 2969$

Balance after 3 years is $2969.