Question

Angelo Larragu's savings account has a principal of 800. It earns 6 percent interest compounded quarterly.
What is the amount in the account at the end of the second quarter?
How much is the compound interest?

Answer 1

The formula to use is as follows:
\[A=P(1+\frac{0.06}{4})^{2}\]
where A is the amount at the end of the second quarter and P is the principal.
When you have found A, the amount at the end of the second quarter, subtract the principal from A to find the compound interest.

Answer 2

I'm sorry,but I still do not understand.

Answer 3

http://qrc.depaul.edu/StudyGuide2009/Notes/Savings%20Accounts/Compound%20Interest.htm
\[\LARGE A=P(1+\frac{r}{n})^{nt}\]
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

For you:
P = 800
r = 0.06
t = 0.5
n = 4
\[\LARGE A=800(1+\frac{0.06}{4})^{4*0.5} = 800(1+\frac{0.06}{4})^{2}\]

Answer 4

A = the amount in the account at the end of the second quarter.
A-P = compound interest