Question

Jeffery and carrie deposit 800.00 into an savings account which earns 4%interest compounded quarterly they want to use the money in the account to go on a trip in 2 years how much will they be able to spend ​

Answer 1

• 866.29

Explanation:

• Deposit = 800
• Interest rate = 4% compounded quarterly
• Time = 2 years

Number of compounds:

• 2 / 1/4 = 8

Saving amount at the end of 2 years:

• 800*(1 + 0.04/4)^8 = 866.29