Phillip opened a savings account with an annual interest rate of 8% and an initial deposit of $3500. If his interest is compounded quarterly, how much is in Jeffrey’s account after 2 years? Round your answer to the nearest cent.

Question

interest compounded quarterly: A equals P left parenthesis 1 plus r over 4 right parenthesis to the power of 4 t end exponent
A=P(1+r/4)^4t

Answer 1

just plug the values into your formula , then let your calculator take over

A = 3500(1 + .08/4)^8
= 3500(1.02)^8
= ...

Answer 2

1.56