The money market account earns 8/4 = 2% interest per quarter.
In one year, there are 4 quarters.
so, the formula to calculate the balance after 8 years is:
A = P (1 + r/n)^(nt)
where A is the final balance, P is the principal (initial investment), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years the money is invested for.
Substituting in the given values,
A = 1000 (1 + .02)^(4*8)
A = 1000 (1.02)^32
A = 1000 (1.8587)
A = 1858.7
So after 8 years, Ed will have earned $1858.7.