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Suki has placed $800 in an account that pays 4 percent interest compounded quarterly. At the end of two years (eight quarters), the balance in the account will be $. That means suki will have earned $ in interest during that time. (round your answers to the nearest cent. ) what will be the balance in the account at the end of two years (eight quarters)? how much interest will suki have earned during that time? (round your answers to the nearest cent. ).



Answer :

Tutorconsortium411

The account balance at the end of two years (eight quarters) is $866.24.

Suki earned $66.24 interest during that time.

What do you mean by interest rate?

The real yearly cost of funds over the course of a loan is the annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number.

According to data in the given question,

We have:

Placed amount= A= $800

Interest rate (quarterly)= r= 4%

Time= t = 2 years

Now, we will using the formula below:

[tex]A=P(1+\frac{r}{n} )^{nt}\\=800(1+\frac{0.04}{4} )^{4*2}\\=800(1+0.01 )^{8}\\=800(1.0828)\\=866.24[/tex]

So, the account balance at the end of two years (eight quarters) is $866.24.

Then, we have to determine the earned interest during that time,

Earned interest= A-P

= 866.24 - 800

= 66.24

Therefore, she earned $66.24 interest during that time.

To learn more about interest rate, visit:

https://brainly.com/question/13324776?referrer=searchResults

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