Find the compound amount for the deposit and the amount of interest earned.
​$7300 at 2.9​% compounded quarterly for 3 years
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Part 1
The compound amount after 3 years is ​$

enter your response here.
​(Do not round until the final answer. Then round to the nearest cent as​ needed.)

To calculate the compound amount $ A $, we use the compound interest formula:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $ P $ is the principal amount (initial deposit),
- $ r $ is the annual interest rate (in decimal form),
- $ n $ is the number of times interest is compounded per year,
- $ t $ is the number of years.

Given:
- $ P = 7300 $ (the initial deposit),
- $ r = 2.9\% = 0.029 $,
- $ n = 4 $ (since the interest is compounded quarterly),
- $ t = 3 $ years.

Now, let's substitute the values into the formula and calculate the compound amount:

\[
A = 7300 \left(1 + \frac{0.029}{4}\right)^{4 \times 3}
\]The compound amount after 3 years is approximately \$7,961.05.

### To find the interest earned:
\[
\text{Interest} = A - P = 7961.05 - 7300 = 661.05
\]

So, the interest earned is approximately \$661.05.

Would you like more details or have any questions? 

Here are 5 related questions to expand on this:
1. What if the interest were compounded monthly instead of quarterly?
2. How does the compound interest formula change if compounded continuously?
3. What would happen if the deposit period extended to 5 years at the same rate?
4. How would doubling the interest rate affect the compound amount?
5. Can you calculate the effective annual rate (EAR) for this deposit?

**Tip:** Compounding more frequently (e.g., monthly instead of quarterly) increases the total amount earned!

$7300 at 2.9​% compounded quarterly for 3 years. Find the compound amount for the deposit and the amount of interest earned.

Learn how to calculate the compound amount and interest earned on a $7300 deposit at 2.9% compounded quarterly over 3 years. This detailed step-by-step solution uses the compound interest formula to find a final amount of $7,961.05 and interest earned of $661.05.

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