Answer:
$375.71
Step-by-step explanation:
Given that:
Rate of interest = 5.5% compounded quarterly
Time = 1.5 years
Principal amount deposited in savings account = 1.5 years
To find:
Interest earned = ?
Solution:
Formula for amount with interest compounding quarterly:
[tex]A = P(1+\dfrac{r}{4\times 100})^{4t}[/tex]
Putting the values:
[tex]A = 4400(1+\dfrac{5.5}{4\times 100})^{4\times 1.5}\\\Rightarrow 4400\times 1.01375^6\\\Rightarrow 4400\times 1.085\\\Rightarrow \$ \bold{4775.71}[/tex]
Interest earned = Amount - Principal
Interest earned = 4775.70 - 4400 = $375.71
