document.write( "Question 1035116: If $100 is invested at 4% compounded quarterly, what is the interest earned after:
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Algebra.Com's Answer #649736 by Edwin McCravy(20055) $\"\"$ $\"About$

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If $100 is invested at 4% compounded quarterly, what is the interest earned after:
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document.write( "First we find what the $100 will have grown to by using the\r\n" );
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document.write( "where \r\n" );
document.write( "P = the beginning amount = 100\r\n" );
document.write( "r = the percentage interest expressed as a decimal = 0.04\r\n" );
document.write( "n = the number of times per year interest is accumulated = 4\r\n" );
document.write( "t = the number of years that have passed since the money was invested = 3\r\n" );
document.write( "in the first part of the problem and 5 in the second.\r\n" );
document.write( "A = the amount the $P will have grown to after n years.\r\n" );
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document.write( "So substitute those in the formula and calculate A. \r\n" );
document.write( "Then subtract P from A to find out how must interest\r\n" );
document.write( "was added over those 3 or 5 years.\r\n" );
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document.write( "Edwin

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