Question

Find the final value of 2000 invested at an interest rate of 3% compounded quarterly for 8 years

Answer 1

2540.22

Explanation:

amount = principal amount * (1+ r/n) ^ nt

r= interest rate as decimal

n=number of times interest is compounded

nt=time

Answer 2

2540.22

Explanation:

The equation

Final value=amount invested (1+(interest rate÷ quarter)) ^(quarter ×time)

Apply the given in the question to the equation

Final value=2,000×(1+(0.03÷4))^(4×8)

Final value=2540.22 the answer