Answer:
$720.37
Step-by-step explanation:
To solve this problem, we can use the compound interest formula:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, change 6.2% into a decimal:
6.2% -> -> 0.062
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
To find the interest earned, just subtract the principal of 2,000 from 2,720.37:
<u>The interest earned is $720.37</u>