MATH
posted by Benjie .
What would be the amount of coumpound interest on $8,000 invested for one year at 6%,compounded quaterly? Round your answer to the nearest dollar

The compound interest derives from
I = P[(1 + i)^n  1] where P = the amount invested, i = the decimal equivalant of the periodic interest rate and n = the number of interest bearing periods.
Therefore, P = 8000, i = 6/100(12) = .015 and n = 4.
I = 8000[(1 + 6/100(4))^4  1]
I = 8000[1.015^4  1]
I = 8000[1.06136  1] = $490.91 = $491