Question

$2,500 principal earning 4%, compounded quarterly, after 4 years $40,000.00 $41,600.00 $2,931.45 $2,924.65

Answer 1

Amount= $2933.2

Explanation:

The interest of $2,500 principal earning with rate of 4%, compounded quarterly, after 4 years

A= p(1+r/n)^(nt)

P= $2500

r= 4/100= 0.04

t= 4

n = 4*4= 16

A= 2500(1+0.04/16)^(16*4)

A= 2500(1+0.0025)^(64)

A= 2500(1.0025)^64

A= 2500(1.17328)

A= 2933.2

Amount= $2933.2