Question

I got this one wrong, someone please help??

Oscar Montez’s savings account has a principal of $7,201. It earns 6% interest compounded quarterly. What is the amount of interest he earned by the end of the second quarter?

Answer 1

I said $108.01... but it was wrong.

Answer 2

You can use the following formula:
\[A=P(1+\frac{r}{n})^{t}\]
where A is the amount after the number of compounding periods, P is the principal, r is the annual interest rate as a decimal, n is the number of compounding periods in a year, and t is the number of compounding periods.
\[A=7201(1+\frac{0.06}{4})^{2}=you\ can\ calculate\]

Answer 3

okay let me give it a try

Answer 4

After you calculate A, subtract $7201 to find the amount of interest.

Answer 5

7418.65-7201 = 217.65 ?

Answer 6

Correct! Good work.

Answer 7

You're awesome! thank you!

Answer 8

You're welcome :)

Answer 9

End of the second qtr = .5 years

6% compounded quarterly = (1+(.06/4))^4
6% compounded quarterly = (1+.015)^4
6% compounded quarterly = .0613635506

Total = Principal × ( 1 + .0613635506 )^.5
Total = 7,201 * (1.030225)
Total = 7,417.62
Interest = 7,417.62 -7,201
Interest = 216.62

Compound Interest Calculator
http://1728.org/compint.htm

Answer 10

@wolf1728 Your answer is a little off.
@kropot72 is correct above.