SOLUTION: Julie borrowed $400 for 1 year at 8% interest compounded quarterly. What is the compound interest? I don't know how to work this probelm.

Question 287118: Julie borrowed $400 for 1 year at 8% interest compounded quarterly. What is the compound interest?
I don't know how to work this probelm.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Julie borrowed $400 for 1 year at 8% interest compounded quarterly.
What is the compound interest?
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Interest = 400[(1+(0.08/4)^(4*1) - 400]
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interest = 400[(1.02)^4 -1]
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interest = 400[0.0824]
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interest = $32.97
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Cheers,
Stan H.
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