Western savings offer there year term deposits at 2

This a question of compound interest, we can calculate it by the formula for both:-

A = P * ( 1 + (r/n))^nt

Where A = amount

P = principal value = investment value = $5000 ( will be same for both cases)

r = rate

n = number of periods

t = time = 3 years for both .

a.) for western savings

rate = 2.25%

n = 1 (compounded annually )

using formula,

A = P * ( 1 + (r/n))^nt

A = 5000 * ( 1 + (2.25% / 1))^1*3

A = 5000 * 1.06903014

A = 5345.1507

b.) At credit union:-

rate = 2.0%

n = 4 ( compounded quarterly )

using formula,

A = P * ( 1 + (r/n))^nt

A = 5000 * ( 1 + ( 2% / 4))^{3 * 4}

A = 5000 * 1.06167781

A = 5,308.38