You deposit $1,000 for 4 years at an interest rate of 2.0%. If the interest is compounded annually, how much money do you have after four years? a.
$1,082.40 b. $ 1,100.00 c. $ 1,103.80 d. $ 1,344.90 Redo the above question with the same amount of depoist and the same interest rate, but with the interest compounded quarterly.How much money would you have at the end of the four years in this situation? a. $1,081.70 b. $1,083.10 c. $1,110.80 d. $1,351.30

Question

You deposit $1,000 for 4 years at an interest rate of 2.0%. If the interest is compounded annually, how much money do you have after four years? a.
 $1,082.40 b. $ 1,100.00 c. $ 1,103.80 d. $ 1,344.90 Redo the above question with the same amount of depoist and the same interest rate, but with the interest compounded quarterly.How much money would you have at the end of the four years in this situation? a. $1,081.70 b. $1,083.10 c. $1,110.80 d. $1,351.30

anonymous · Answer

Find out what 2% of 1000 is. That is the interest you earn at the end of year 1. Add that interest to the original 1000 and you get your year 1 total.

Find out what 2% of your year 1 total is. That is the interest you earn at the end of year 2. Add that to the year 1 total to get your year 2 total.

Find out what 2% of your year 2 total is. That is the interest you earn at the end of year 3. Add that to the year 2 total to get your year 3 total.

Find out what 2% of your year 3 total is. That is the interest you earn at the end of year 4. Add that to the year 3 total to get your year 4 total.