Final answer:
To calculate the amount of interest Laura will earn after 10 years, use the formula for compound interest. Plug in the values: principal amount, interest rate, and number of times interest is compounded per year. Calculate the expression to find the final amount and subtract the principal to get the interest earned.
Step-by-step explanation:
To calculate the amount of interest Laura will earn after 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where A is the final amount, P is the principal, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
Given that Laura deposited $400.00 as principal, the interest rate is 8%, and the interest is compounded quarterly (n = 4), we can plug these values into the formula:
A = 400(1 + 0.08/4)^(4*10)
Calculating this expression, we find that the final amount A is $716.21. Therefore, Laura will earn $716.21 - $400.00 = $316.21 in interest after 10 years.