Shivani opened a saving account and deposited 1, 000
Interest 2%
The money is compounded quartely
Time = 2 years
A = P(1 + r/n)^nt
Where P = principal, t = time, r= rate and n= period
Since it is compounded quartely, then the period is 4
r = 2%
= 2/100
= 0.02
A = 1000(1 + 0.02/4)^4 x 2
Solve the parenthesis first
A = 1000(1 + 0.005)^4 x 2
A = 1000( 1.005)^8
Solve the exponential expression
1.005^8 = 1.041
A = 1000 x 1.041
A = 1,040.70
The answer is $1,040.70
