SOLUTION: If $700 is invested at 7% compounded quarterly, what is the interest earned after: a) 2 years Interest earned = $__________ b) 7 years Interest earned = $__________

Algebra ->  Finance -> SOLUTION: If $700 is invested at 7% compounded quarterly, what is the interest earned after: a) 2 years Interest earned = $__________ b) 7 years Interest earned = $__________      Log On


   

Question 1040599: If $700 is invested at 7% compounded quarterly, what is the interest earned after:
a) 2 years
Interest earned = $__________

b) 7 years
Interest earned = $__________
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
700(1+0.07/4)^(4*2) = 804.22-700 = 104.22 is the interest earned
700(1+0.07/4)^(4*7) = use your calculator.