Respuesta :
Interest for one compounding period
[tex]2.8\% \div 4 = 0.7\%[/tex]
Number of compounding periods
[tex]12 \times 4 = 48[/tex]
Amount after 12 years
[tex]56780 \times (1.007)^{48} = 79361.52[/tex]
$7936 is the amount in a savings account after 12 years if $56,780 is invested at 2.8% interest compounded quarterly.
What is Compound interest?
Compound interest is a method of calculating the interest charge. In other words, it is the addition of interest on interest.
Compound Interest = [tex]P(1+r/n)^{rt}[/tex]
We need to find the amount in a savings account after 12 years if $56,780 is invested at 2.8% interest compounded quarterly.
Present value (principal amount), P
compound interest per period, = 2.8% / 4 = 0.7%
Number of compounding periods= 12 x 4 = 48
Using compound interest formula,
[tex]P(1+r/n)^{rt}[/tex]
= [tex]56,780 (1+0.007)^{48}\\\\56,780 (1.007)^{48}\\\\7936.52[/tex]
Learn more about interest here;
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