After 4 years, what is the total amount of an investment of 1500 in an account paying 2.5% interest, compounded quarterly?
a. $1827.60
b. $1657.24
c. $1576.66
d. $2226.67

Option (b) is correct.

The amount after 4 years will be $1657.24

Step-by-step explanation:

Given : an investment of 1500 in an account paying 2.5% interest.

We have to find the amount  after 4 years , compounded quarterly.

Using formula for Compound interest

Where,

A  = Amount

P = Principal amount

r = rate of interest

n = time period

For the given data,

P = 1500  

r= 2.5 %

When  Compound interest  is calculated quarterly

Time becomes 4 time the original time

and rate become one forth of the original rate.

Then r =

and n = 16

Substitute, we have,

Simplify, we have,

A = 1657.24

Thus, The amount after 4 years will be $1657.24

the answer is b

answer: 72: 111

step-by-step explanation: