Question 201923
{{{A=p(1+r/n)^(n*t)}}} Start with the compound interest formula



{{{A=300(1+0.07/4)^(4*2)}}} Plug in {{{p=300}}} (the principle), {{{r=0.07}}} (this is the decimal form of 7% interest), {{{n=4}}} (since it is compounded quarterly), and {{{t=2}}} (for 2 years)




{{{A=300(1+0.0175)^(4*2)}}} Divide 0.07 by 4 to get 0.0175



{{{A=300(1+0.0175)^(8)}}} Multiply the exponents 4 and 2 to get 8



{{{A=300(1.0175)^(8)}}} Add 1 and 0.0175 to get 1.0175



{{{A=300(1.14888)}}} Raise 1.0175 to the 8 th power to get 1.14888



{{{A=344.664}}} Multiply 300 and 1.14888 to get 344.664



So if you invest $300 at an interest rate of 7%, which is compounded quarterly for 2 years,  the return is about $344.66 (which is rounded to the nearest cent)



So the answer is D)