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1. Over 3 years, how much more does $3000 in a savings account with an APR of 3.2% compounded
semiannually earn in interest than the same account with an APR of 3.0% compounded quarterly? (6
pts)
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n=
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A=$
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Difference: $
Which account will earn more money? 3.2% semiannually or 3.0% quarterly

Answer :

Answer:

$1080

Step-by-step explanation:

[tex]((3000 \times 0.032) \times 2) \times 3 = 576[/tex]

convert % to decimal by multiplying 3.2%x100=0.032

then multiply by initial amount 3000x0.032

then multiply by 2 because it's compounding semiannual

then multiply by 3 because it's over a 3 yr period

do the same for the quarterly compound but multiply by 4 because it's quarterly

[tex]((3000 \times 0.03) \times 2) \times3 = 1080[/tex]

over a 3 yr period the quarterly compounded amount will earn:

[tex]1080 - 576 = 504[/tex]

$504 more than the account compounded semiannual

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