Find the compound interest earned by the deposit. Round to the nearest cent.
-$\$ 1400$ at $4 \%$ compounded quarterly for 4 years
A) $\$ 237.80$
B) $\$ 224.00$
C) $\$ 241.61$
D) $\$ 1456.85$

Question

Quizplus · Accepted Answer

The compound interest can be calculated using the formula $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 1400 $, $ r = 0.04 $, $ n = 4 $, and $ t = 4 $. The amount $ A $ is calculated as $ 1400 \left(1 + \frac{0.04}{4}\right)^{4 \times 4} = 1641.61 $. The compound interest is $ 1641.61 - 1400 = 241.61 $.

Find the Compound Interest Earned by the Deposit $1400\$ 1400$1400 At 4%4 \%4%

Find the Compound Interest Earned by the Deposit $\$ 1400$ At $4 \%$