Answer: he will earn $4956.6 in two years
Explanation:
Initial amount deposited by Charles Johnson into the account is $4,400
This means that the principal is P
P = 4400
It was compounded quarterly. This means that it was compounded once in four months. Therefore,
n = 4
The rate at which the principal was compounded is 6%. So
r = 6/100 =0.06
It was compounded for a total of 2 years. Therefore
t = 2
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of n years.
A = 4400(1+0.06/4)^4×2
A = 4400(1+0.015)^8
A = 4400(1.015)^8
A = $4956.6