Question

a $500 investment earns interest at 6% compounded quarterly, for 8 years. how much interest will be earned in the final year of the 8-year term?

Answer 1

P=500
r=.06
t=8
n=4

Answer 2

@alexeis_nicole

Answer 3

okay so ..... would it be

r= 0.06/4= 0.015
nt=8(4)=32

A=500(1+0.015)^32

Answer 4

righttt?

Answer 5

@Abarnett

Answer 6

yup... exactly!

Answer 7

okay.... sooooo that calculated will give me
A= 500(1.015)^32
= 500(1.61)
= 805.16

Answer 8

is that right? :$
the teacher gave us the answer of $46.55

Answer 9

hold on just a sec... let me check your work

Answer 10

ok :)

Answer 11

See it only asks how much is earned in the 8th year... Your answer is the total of all

Answer 12

soo.... what do i do?

Answer 13

they're asking for the total amount interest earned in the end though .... not how much is earned in the 8th year.

Answer 14

find out the amount for 7 years... then the 8 year total minus the 7 year total

Answer 15

t=7

Answer 16

oooooooooh !!! omg that makes sense :) THANKS !

Answer 17

yup, np!!!