sharry made a desposit of $860 to open a savings account that pays intrest at an annual rate of 8% compound quarterly. If she keeps her original desposit in the savings account and is paid intrest of four quarters, she will earn intrest in the first year of __________. Her desposit will earn an effective rate of intrest of _______________, to the nearest hundredth percent.

I think for this theres a formula look in your book.

something about rate x percentage = what your looking for. but it should be in your book

6880

To calculate the interest earned in the first year, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount (including interest)
P = the principal amount (initial deposit)
r = the annual interest rate (convert to decimal)
n = the number of times interest is compounded per year
t = the number of years the money is invested for

In this case, the principal amount (P) is $860, the annual interest rate (r) is 8% or 0.08, the number of times interest is compounded per year (n) is 4 (quarterly), and the number of years (t) is 1.

Plugging in these values into the formula:
A = 860(1 + 0.08/4)^(4*1)
A = 860(1 + 0.02)^4
A = 860 * 1.02^4
A ≈ 860 * 1.082432
A ≈ 932.90 (rounded to the nearest cent)

So, Sharry will earn interest of approximately $932.90 in the first year.

To calculate the effective interest rate, we can use the formula:

Effective Rate = (1 + r/n)^(n*t) - 1

Using the same values for r, n, and t as before:
Effective Rate = (1 + 0.08/4)^(4*1) - 1
Effective Rate = 1.02^4 - 1
Effective Rate ≈ 1.082432 - 1
Effective Rate ≈ 0.082432 (rounded to the nearest hundredth)

So, Sharry's deposit will earn an effective interest rate of approximately 8.24% to the nearest hundredth percent.