The amount A that Patrik will cash is given by the compound interest formula:
A = C (1 + i)ⁿ
where:
C = initial amount of money
i = interest, written as a decimal number
n = number of periods
In our case, the interest is compoundend quarterly, but we have a time in years. Therefore, we need to transform years in quarters:
n = 15×4 = 60
Now, we can apply the formula:
A = 400·(1 + 0.035)⁶⁰
= 3151.24$
Hence, the correct answer is B) 3151.24$
