How much will $8,000 grow to in five years,assuming an interest rate of 8% compounded quarterly?
A)$10,989.
B)$11,755.
C)$11,888.
D)$12,013.

Question

Quizplus · Accepted Answer

We can use the formula A=P(1+r/n)^(n*t), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times compounded per year, and t is the number of years. Plugging in the given values, we get A=8000(1+0.08/4)^(4*5) which simplifies to A=$11,888. Therefore, the answer is choice C.

How Much Will $8,000 Grow to in Five Years,assuming an Interest