SOLUTION: You deposit $3000 into a money-market savings account which pays 4.8% compounded quarterly, and you make no withdrawals from or further deposits into this account for 3 years. How
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Question 1122308: You deposit $3000 into a money-market savings account which pays 4.8% compounded quarterly, and you make no withdrawals from or further deposits into this account for 3 years. How much money is in your account at the end of those 3 years? Answer by greenestamps(13200) (Show Source):
4.8% compounded quarterly means the amount increases by 1.2% each quarter. That means the amount grows by a FACTOR of 1+1.2% = 1+.012 = 1.012 each quarter.
In 3 years the original amount will grow by that factor 12 times (4 times a year for 3 years). So the amount after 3 years will be
