3. Carlos' grandparents gave him $19,000

for college. He plans to invest it with Willy

Loanshark. Willy pays 10% compounded

quarterly for one year. How much will Carlos

have at the end of the year? *

O

$20972.44

O

$2851187.50

O

$19475.00

O

$66500.00

A = 20972.44

Step by step explanation:

Principal (P) = 19000

Rate = 10% = 0.1

Time = 1 year

N (number of time the interest is compounded) = 4

Compound interest (A) = P (1 + r/n) ^nt

A = 19000 * (1 + 0.1 / 4) ^4*1

A = 19000 * (1 + 0.025) ⁴

A = 19000 * 1.025⁴

A = 19000 * 1.1038

A = 20972.44

The interest at the end of the year is $20972.44