A family deposited $500 in a money market account to save for a trip. If their money earns 1.5% interest compounded quarterly, how much will they have in one year?

1 Answer
Jul 7, 2018

Answer:

#color(indigo)("In 1 year they will have " $530.68#

Explanation:

#P = $500, N = 1 Year = 4 " Quarters", R = 1.5% " Quarterly"#

#"Formula for compound interest " A = P * (1 + R/100)^N#

#A = 500 * (1 + 0.015)^4 = $530.68#