Posted by **Amy ** on Tuesday, April 9, 2013 at 5:00am.

An initial investment of $12,000 is invested for 2 years in an account that earns 4% interest compounded quarterly. Find the amount of mnoey in the account at the end of the period.

- UOG -
**Henry **, Wednesday, April 10, 2013 at 7:02pm
P = Po(1+r)^n.

Po = $12,000

r = (4%/4)/100% = 0.01 = Quarterly % rate expressed as a decimal.

n = 4Comp./yr. * 2yrs. = 8 Compounding periods.

Plug the above values into the given Eq.

and get $12,994.28.

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