Aaron put $1000 in an account that pays 10% interest compounded quarterly he leaves it in the account for six months estimate how much interest he earns

He earns $50.41 of interest.

Step-by-step explanation:

The compound interest formula is given by:

Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for(in years).

In this problem, we have that:

Compounded quartely

So 12/4 = 3 times a year, so

How much interest he earns?

A - P = 1050.41 - 1000 = 50.41

He earns $50.41 of interest.

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