Answer :
Given that Tom invested $4500 in an investment paying 10% compounded quarterly for 3 years.
We have to find the interest for the given time period.
We know that the formula of amount on a principal P, rate r per annum, time t years where interest is compounding quarterly is:
[tex]A=P(1+\frac{r}{4})^{4t}[/tex]Here, P = 4500, r = 0.1 and t = 3. So,
[tex]\begin{gathered} A=4500(1+\frac{0.1}{4})^{4(3)} \\ =4500(1+0.025)^{12} \\ =4500(1.025)^{12} \\ =4500(1.3448) \\ =6051.6 \end{gathered}[/tex]So, the amount we get is $6051.6.
Now, it is known that the interest is the difference between the amount and the principal. So,
[tex]\begin{gathered} \text{ interest}=\text{ amount-principal} \\ =6051.6-4500 \\ =1551.6 \end{gathered}[/tex]Thus, the interest is $1551.6.