Question 952447
{{{ A = P*( 1 + r/n )^(n*t) }}}
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{{{ t }}} is the number of years of the investment period
{{{ n }}} is the number of times the interest gets
compounded each year
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You are given:
{{{ t = 1 }}} yr
Compounding quarterly means 
{{{ n = 4 }}}
So, the compounding is happening
every {{{ 3 }}} months, since {{{ 12/4 = 3 }}}
and
{{{ P = 500 }}}
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{{{ A = 500*( 1 + .04/4 )^(4*1) }}}
{{{ A = 500*( 1 + .01 )^4 }}}
{{{ A = 500*1.01^4 }}}
{{{ A = 500*1.040604 }}}
{{{ A = 520.30 }}}
This is Interest + Principle after 1 yr, so the 
interest earned is $20.30