<PRE><B>Question 894744</B>
A savings account earns 4% annual interest compounded quarterly. How much interest would $500 earn if it was invested for one year?
---------------------
A(t) = P(1+(r/n))^(nt)
---------------
A(1) = 500(1+0.04/4)^(4*1)
-----
A(1) = 500(1.01)^4
-----
A(1) = 500*1.0406
-----
A(1) = $520.30
=======================
Interest = $20.30
=======================
Cheers,
Stan H.</PRE>