SOLUTION: $24,000 is deposited for 5 years in an account earning 7% interest. (Round your answers to two decimal places.) Calculate the interest earned if interest is compounded quarterly

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Question 1134286: $24,000 is deposited for 5 years in an account earning 7% interest. (Round your answers to two decimal places.)
Calculate the interest earned if interest is compounded quarterly.
Answer by greenestamps(13200) About Me  (Show Source):
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The annual interest rate is 7%; the quarterly interest rate is one-fourth of that, 1.75%.

Each quarter, the value of the account increases by 1.75%; the growth factor is 1+.0175 = 1.0175.

5 years is 5*4=20 quarters; the growth factor gets applied 20 times. The value at the end of 5 years is

24000%2A%281.0175%29%5E20

Use a calculator.