Respuesta :
Answer:
$20.30
Step-by-step explanation:
Given : A savings account earns 4% annual interest compounded quarterly.
To Find : How much interest would $500 earn if it was invested for one year?
Solution:
Rate of interest = r = 4% = 0.04
Principal = $500
T = 1 year
n = No. of compounds per year = 4
Formula : [tex]A=P(1+\frac{r}{nt})^{nt}[/tex]
Substitute the values
[tex]A=500(1+\frac{0.04}{4})^{4}[/tex]
[tex]A=520.30[/tex]
Interest = Amount - principal = $520.30-$500=$20.30
Hence $500 would earn $20.30 if it was invested for one year.
So, Option B is true .
