A $4000 deposit at an APR of 5.6% with a quarterly compounding for 8 years .

Question

The amount after 8 years would be ???

Answer 1

OK, step by step

5.6 % = .056 yearly nominal

but it is quarterly/ so divide by 4
.014
so every three months, you multiply by
1.014
in other words add 1.4 percent of what you have to what you have every three months
Do this for 8 years which is 32 quarters
1.014 * 1.014 * 1.014 32 times
or
1.014^32 = 1.56032
so
4000 * 1.56032 = 6241.29