Monica deposited $760 into an ordinary annuity after each quarter for 2 years at 4% interest compounded quarterly. Determine the (a) future value of each account and (b) the total interest amount earned.

FV=$823.004

Total interest earned=$63.004

Step-by-step explanation:

FV=PV×(1+i/n)^nt

PV=$760

I=4%

t=2 years

n=4

FV=760+(1+0.04/4)^4*2

=760+(1+0.01)^8

=760+(1.01)^8

=760+(1.0829)

=823.004

FV=$823.004

Total interest amount earned

=FV-PV

=$823.004-760

=$63.004

step-by-step explanation:

the original amount doesn't ''re just looking for the time it takes for 1/2 of the substance to we have

(1/2) =)     take the ln   of both sides

ln (1/2)   = )   and we can write

ln(1/2) = ) lne     and lne   = 1     so we have

ln(1/2) = -.1092t     divide both sides by -.1092

t = ln(1/2)/-.1092 = about 6.347 days = about 6.3 days (rounded)