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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.

Sagot :

Shristiparmar1221idn
  • At the end of two years, the account has $864 in it.
  • Suki made $64 in interest at that time.
  • "P" represents the $800 starting principle amount.
  • ‘R’ is a 4% interest rate.

What is compound interest?

In other terms, compound interest is interest on principal + interest and refers to the addition of interest to the principal amount of a loan or deposit. Reinvesting interest, or adding it to the lent capital rather than paying it out or requiring payment from the borrower, results in interest being earned on the principal amount plus previously accumulated interest in the next period. In economics and finance, compound interest is common.

In contrast to simple interest, which doesn't compound because past interest isn't added to the principle for the current period, there is compounding with compound interest.

Learn more about compound interest, from:

brainly.com/question/14295570

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