Final answer:
After 24 months, an account with a $2000 initial investment at an 8% interest rate compounded quarterly will have $2343.40.
Step-by-step explanation:
The question asks how much money will be in an account after 24 months if $2000 is invested at an 8% interest rate compounded quarterly. To answer this, we need to use the formula for compound interest: A = P(1 + r/n)^(nt), where:
- P is the principal amount ($2000).
- r is the annual interest rate (0.08).
- n is the number of times the interest is compounded per year (4).
- t is the time the money is invested for, in years (24 months = 2 years).
Substituting the values into the formula, we get:
A = 2000(1 + 0.08/4)^(4*2)
A = 2000(1 + 0.02)^(8)
A = 2000(1.02)^8
A = 2000*1.1717
A = $2343.40
The account will have $2343.40 after 24 months.