You deposit $6,800 in a money-market account that pays
an annual interest rate of 5.7%. The interest is
compounded quarterly. How much money will you have after
The reason n=4 is because "quarterly" means "4 times a year".
Plug in the compound interest formula:
or A = $8038.40 rounded down to the nearest cent.
(Banks NEVER round UP to the next penny, even though
the rule we are taught is to round UP to the next
penny when the third decimal place is 5 or more.)