Regina deposits $3,500 in a savings account that pays 1.05% interest, compounded Quarterly.
How much interest did she earn at the end of 5 years? Round to the nearest cent.

Question

Regina deposits $3,500 in a savings account that pays 1.05% interest, compounded Quarterly.  How much interest did she earn at the end of 5 years? Round to the nearest cent.

Helga · Answer

The  interest  Regina  earned  at the end of  5 years  is $188.41    Compound interest: Calculating interest earned  From the question, we are to determine how much  interest  Regina  earned  at the end of  5 years .  From the  compound interest  formula, we have that  Compound interest = P(1 + r/n)^nt - P  Where P is the principal   r is the interest rate   n is the number of times compounded per year   and t is the time.  From the given information  P = $3,500  r = 1.05% = 0.0105  n = 4  t= 5  Thus,   Compound interest = [P(1 + r/n)^nt] - P  Compound interest = [3500(1 + 0.0105/4)^4(5)] - 3500  Compound interest = [3500(1 + 0.0105/4)^20] - 3500  Compound interest = 3688.4052 - 3500  Compound interest = $188.41  Hence, the  interest  is $188.41    Learn more on  Compound interest  here: https://brainly.com/question/25545513  #SPJ1

Compound interest: Calculating interest earned

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