Question 42323
The general formula is
{{{A = P*(1 + I/100)^t}}}
where P = principal that becomes amount = A in 't' years at the rate I% compound interest per annum.


Here I is 8% per annum (12 months).
So I is 2% per quarter (3 months).
So time 't' will also be in quarters.


Put A = 30,000, I = 2 and t = 32 (since 32 quarters in 8 years) in the formula.
You get {{{30000 = P*(1+2/100)^32}}}
or {{{P = 30000/(1.02)^32}}}
= {{{30000/1.88454}}}
= 15919 (approx)


Thus the $15919 will amount to $30,000 in 8 years at 8% rate compounded quarterly.


For checking the correctness answer you may visit this site


http://id.mind.net/~zona/mmts/functionInstitute/exponentialFunctions/compoundInterest.html