Find how much interest $25,000 earns in 4 years in a certificate of deposit paying 8.5% interest compounded quarterly.

Answer 1

4*4 = 16 compounds
8.5/4 = 2.125% = .02125

1.02125^16 = 1.39995

* 25,000 = 34,998.80 final value

- 25,000 = 998.80 interest

Answer 2

looks like Damon lost about $10,000

interest should have been
$9,998.80

Answer 3

Sorry about that.

Answer 4

25,000 earns 4years deposit 9.5% compound quartely

Answer 5

4579.89