Nicholas wants to buy a cd for $200 that earns 3% apr and is compounded quarterly. the cd matures in 5 years. he will be paid the interest he earns each quarter. how much interest will nicholas have earned on this cd after the first quarter?

a. $3.00

b. $6.00

c. $1.50

d. $0.75

Nicholas will have earned $1.5 interest after the 1st quarter ⇒ answer C

Step-by-step explanation:

* Lets explain how to solve the problem

- Nicholas wants to buy a CD for $200

- It earns 3% APR and is compounded quarterly

- The CD matures in 5 years

- Nicholas will be paid the interest he earns each quarter

- The rule of the compounded interest =

  where:

# P = the principal investment amount

# r = the annual interest rate in decimal

# n = the number of times that interest is compounded per unit t

# t = the time the money is invested for

∵ P = $200

∵ r = 3/100 = 0.03

∵ n = 4 ⇒ compounded quarterly

- We want to find the interest  Nicholas will have earned on this CD

 after the first quarter

∴ t = 1/4 year

∴ The interest =

* Nicholas will have earned $1.5 interest after the 1st quarter

you'll just earn points here

step-by-step explanation:

i think the amount would be $140.62