Compound Interest, SMB-008 MC

A bank's Maxi Saver Account pays interest at 6% per annum, compounded quarterly.

Jen opens a Maxi Saver Account and deposits $3000 into it.

Assuming no further deposits or withdrawals are made, what will be the balance in the account at the end of two years?

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`=> C`

Show Worked Solution

`text{Compounding periods}\ (n) =2 xx 4=8`

`text{Compounding rate}\ (r) = \frac{0.06}{4} = 0.015`

`=> C`