00:01
To find the amount of interest earned on $4 ,000 at 4 .8 % compounded quarterly.
00:05
So let's look at our formula.
00:07
A equals p, 1 plus r over n to the nt.
00:12
We need to find how much money is going to be in the account.
00:16
A is our principal, 1 plus our interest rate, which i'm going to change this to 0 .048.
00:25
Now since this is quarterly, that tells me n equals 4.
00:31
And how many years are we doing this? two years.
00:36
So we're going to put this for two years, so there's my t.
00:38
So let me go to my calculator and get that value.
00:41
So i'm going to go 4 ,000, parentheses, 1 plus 0 .048 divided by 4.
00:50
And then i'm going to raise that to the 8th power because 4 times 2 is 8.
00:54
And i'll get a value of $4 ,400 and 52 cents...