Based on the period of compounding, the amount it comes to after 3 quarters is $5,327.75 and the interest earned is $52.75.
Find periodic rate
The 4% is an annual figure. Find the quarterly figure:
= 4%/4
= 1% per quarter
Amount after 3 quarters
= Amount x ( 1 + rate) ^ number of periods
= 5,725 x ( 1 + 1%)³
= $5,327.75
Interest earned
= Amount after 3 quarters - Invested amount
= 5,327.75 - 5,275
= $52.75
In conclusion, an interest of $52.75 was earned.
Find out more on compounding at https://brainly.com/question/25300240.
