Answer:
The amount of the interest is $755.80 .
Option (c) is correct .
Step-by-step explanation:
Formula
[tex]Amount = P (1 + \frac{r}{4})^{4t}[/tex]
Amount = Principle + Interest
Where P is the principle , r is the rate of interest in the decimal form and t is the time in years .
As given
Jason's savings account has a balance of $2179 .
The account is compounded quarterly at the rate of 6% for 5 years .
P = $2179
6% is written in the decimal form
[tex]= \frac{6}{100}[/tex]
= 0.06
r = 0.06
t = 5 years
Put all the values in the formula
[tex]Amount = 2179(1 + \frac{0.06}{4})^{4\times 5}[/tex]
[tex]Amount = 2179(1 +0.015)^{20}[/tex]
[tex]Amount = 2179(1.015)^{20}[/tex]
[tex]Amount = 2179\times 1.34686[/tex]
Amount = $ 2934.80 (Approx)
Thus
$2934.80 = $2179 + Interest
Interest = $2934.80 - $2179
Interest = $ 755.80
Therefore the amount of the interest is $755.80 .
Option (c) is correct .
