Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A $20,000 deposit was placed in a bank paying 5.75% interest compounded quarterly. After 12 months, how much interest was earned.

Sagot :

AL2006
After 1 year, the bank paid (5.75/4) percent, 4 times.

The value of the investment is (20,000) times (1 + 0.0575/4) to the 4th power.

(1 + 0.0575/4) = 1.014375

That number to the 4th power is 1.05875... (rounded)

The interest alone is (20,000) times (0.05875...) =  $1,175.04
tadvisohil886
[tex]P = 20,000 \\ R = 5.75 \\ T = 1 \\ I = \frac{PRT}{100} \\ = \frac{20000 * 5.75*1}{100} \\ = 115000/100 \\ = 1150 $[/tex]
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.