chase invested $88,000 in an account paying an interest rate of 3% compounded quarterly. assuming no…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times interest is compounded per year, and $t$ is the number of years.

Step2: Convert values to appropriate form

$P=$88000$, $r = 0.03$ (since $3%=0.03$), $n = 4$ (compounded quarterly), and $t = 12$.

Step3: Substitute values into the formula

$A=88000(1 +\frac{0.03}{4})^{4\times12}$. First, calculate the value inside the parentheses: $\frac{0.03}{4}=0.0075$, and $1 + 0.0075=1.0075$. Then, calculate the exponent: $4\times12 = 48$. So, $A = 88000\times(1.0075)^{48}$.

Step4: Calculate $(1.0075)^{48}$

Using a calculator, $(1.0075)^{48}\approx1.43076878$.

Step5: Calculate $A$

$A=88000\times1.43076878\approx125907.65264$. Rounding to the nearest cent, $A\approx$125907.65$.

Answer:

$125907.65$