ANSWER
[tex]\$93.81[/tex]
EXPLANATION
We want to find the interest in 3 years.
To do this, we apply the formula for Compound Interest:
[tex]I=P(1+\frac{r}{n})^{nt}-P[/tex]
where P = principal = $1,000
r = rate = 3% = 0.03
n = number of times compounded per year = 4
t = number of years = 3 years
Therefore, we have that:
[tex]\begin{gathered} I=1000(1+\frac{0.03}{4})^{(4\cdot3)}-1000 \\ I=1000(1.0075)^{12}-1000 \\ I=1093.81-1000 \\ I=\$93.81 \end{gathered}[/tex]
That is the compound interest.
