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Amber Heard invests $2,000,000 dollars to try to settle her payments due to Johnny Depp, the investment pays her a rate of return of 8% that is compounded quarterly. She wants to know how much interes

User Evanthia
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To calculate the interest earned by Amber Heard on her investment of $2,000,000 at a rate of 8% compounded quarterly, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A is the amount of money after t years
P is the principal amount (the initial investment)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the time in years
In this case, P = $2,000,000, r = 0.08, n = 4 (since the interest is compounded quarterly), and t = 1 (since we want to calculate the interest earned after one year). Plugging these values into the formula, we get:
A = $2,000,000(1 + 0.08/4)^(4*1) = $2,166,580.16
Therefore, the interest earned by Amber Heard on her investment is:
$2,166,580.16 - $2,000,000 = $166,580.16
It's worth noting that this calculation assumes that Amber Heard did not withdraw any money from her investment during the year.
User Mrblrrd
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