An investment of $2,000 is earning interest at the rate of 6.2% compounded quarterly over 5 years. Approximately how much interest is earned on the investment? a. $724.67 b. $2127.72 c. $720.37 d. $2720.37

Question

anonymous · Answer

Regular Compound Interest Formula
 
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 
$$a = p(1+ r/n)^{nt}$$

anonymous · Answer

Your answer should be $$2000(1+0.062/4)^{5*4} - 2000$$

anonymous · Answer

2000(1+0.062/4)5∗4−2000

anonymous · Answer

I don't understand. You just repeated what I wrote 5*4 is the power