Answer:
The answer is $948.75.
Step-by-step explanation:
P = 7500
t = 2
r = 6% or 0.06
n = 4 (quarterly means 4 times in a year)
Now, compound interest formula is given as :
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Now putting these values in the formula, we get
[tex]A=7500(1+\frac{0.06}{4})^{4*2}[/tex]
=> [tex]A=7500(1.015)^{8}[/tex]
A = $8448.75
So, interest earned will be = [tex]8448.75-7500=948.75[/tex] dollars
The answer is $948.75.
