SOLUTION: Please Help: Find the compound amount for the deposit. Round to the nearest cent. $300 at 7% compounded quarterly for 2 years A) $310.59 B) $343.47 C) $342.00 D) $344.6

Question 201923: Please Help:
Find the compound amount for the deposit. Round to the nearest cent.
$300 at 7% compounded quarterly for 2 years
A) $310.59
B) $343.47
C) $342.00
D) $344.66

Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the compound interest formula

Plug in (the principle), (this is the decimal form of 7% interest), (since it is compounded quarterly), and (for 2 years)

Divide 0.07 by 4 to get 0.0175

Multiply the exponents 4 and 2 to get 8

Add 1 and 0.0175 to get 1.0175

Raise 1.0175 to the 8 th power to get 1.14888

Multiply 300 and 1.14888 to get 344.664

So if you invest $300 at an interest rate of 7%, which is compounded quarterly for 2 years, the return is about $344.66 (which is rounded to the nearest cent)

So the answer is D)
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