Question

You saved $1,240 and your sister agrees to put it in a savings account at her credit union so you can earn interest. You earned 8% interest compounded quarterly (4 times a year). After 2 years you will have how much $

Answer 1

The amount after 2 years is $2,295.

Given that,

• The invested amount is $1,240.
• The rate of interest is 8%.
• The number of years is 2 × 4 = 8

Based on the above information, the amount after 2 years is

Future value = Present value ×(1 + rate of interest)^number of years

= $1,240 × (1 + 0.08)^8

= $1,240 × 1.08^8

= $2,295

Therefore we can conclude that the amount after 2 years is $2,295.

Learn more: brainly.com/question/18051939