Based on the amount that Bobbie Byrd deposited and the interest rate as well as the period of compounding, her interest earned in 2.5 years is $144.49.
The amount is compounded quarterly so we need to convert the interest rate and the period to a quarterly basis:
6% = 6/4 quarters = 1.5%
Period = 2.5 x 4 quarters = 10 quarters
The amount after 2.5 years is:
= Amount x (1 + rate) ^ number of periods
= 900 x ( 1 + 1.5%)¹⁰
= $1,044.49
Interest is:
= Total amount after 2.5 years - Amount deposited
= 1,044.49 - 900
= $144.49
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