calculating compound interest\nbritney places $100 in a savings account with a 2% interest rate compounded…

calculating compound interest\nbritney places $100 in a savings account with a 2% interest rate compounded quarterly. what will be the total after 3.25 years?\n$a = p(1+\frac{r}{n})^{nt}$\nenter your answer rounded to the nearest cent in the box.

calculating compound interest\nbritney places $100 in a savings account with a 2% interest rate compounded quarterly. what will be the total after 3.25 years?\n$a = p(1+\frac{r}{n})^{nt}$\nenter your answer rounded to the nearest cent in the box.

Answer

Explanation:

Step1: Identify values

$P = 100$, $r=0.02$, $n = 4$, $t=3.25$

Step2: Substitute into formula

$A=100(1+\frac{0.02}{4})^{4\times3.25}$ First calculate the exponent part: $4\times3.25 = 13$, and $\frac{0.02}{4}=0.005$. Then $1 + 0.005=1.005$. So $A = 100\times(1.005)^{13}$.

Step3: Calculate $(1.005)^{13}$

Using a calculator, $(1.005)^{13}\approx1.067007$.

Step4: Calculate $A$

$A=100\times1.067007 = 106.7007\approx106.70$

Answer:

$106.70$