2. Suppose you obtain a $3,000 T - note with a 3% annual rate, paid quarterly, with maturity in 5 years. How much interest will you earn?

You will earn $483.55 in interest.

Step-by-step explanation:

The compound interest formula is given by:

Where A(t) is the amount of money after t years, 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 year and t is the time in years for which the money is invested or borrowed.

$3,000 T - note with a 3% annual rate

This means that

Paid quarterly

Quarterly is 4 times per year, so

Maturity in 5 years.

This means that

How much interest will you earn?

Interest is the final amount subtracted by the principal.

Final amount:

A(5).

Interest:

$3,483.55 - $3,000 = $483.55

You will earn $483.55 in interest.

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step-by-step explanation: