Question

12. Dalton placed $1500 into an account earning 7% annual interest compounded
quarterly. After 3 years, how much interest will Dalton have earned?

Answer 1

First we multiply 7 * 4 (the number of quarterly in a year) = 28% then 1,500 * 28 = 42,000 then divide by 100, 42,000 / 100 = 420, finally multiply per 3 (the number of years) 420 * 3 = 1,260£