Question

Jack puts 800.00 into an account to use for school expenses the account earns 12% interest compounded quarterly how much will be in the account after 8 years

Answer 1

Amount Jack put into the account is 800.0

Rate of interest is 12%

Time period = 8years

we have to find amount Amount that compunded quaterly

The expression for the compund intrest is :

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

Where p is the principal amount

r is the rate of interest , t is the time period, n is the number of times interst applied

From the given data we have,

P=800.00

r=12%=0.12

t=8years

n=4(quarterly)

Substitute the value in the expression:

`\begin{gathered} \text{Amount}=800(1+(0.12)/(4))^(4(8)) \\ \text{Amount}=800(1+0.03)^(32) \\ \text{Amount}=800(1.03)^(32) \\ Amount=800(2.57) \\ \text{Amount}=2056 \end{gathered}`

So, after 8 years the amount will be 2056.