TEXPF02 Find the accumulated balance on $10,000 placed at 8% annual interest for 3 years if the interest is compounded quarterly?
Write the general formula for compounding interest
A = P(1 + 0.08)n
Put the numbers into this formula after computing the number of intervals and the interest rate per interval.
Compounding quarterly for 3 years is 12 compounding intervals.
The interest rate per interval is 8/4 = 2%.
This gives a specific formula for this problem of
A = $10,000(1 + 0.02)12
And the amount is
A = $12682.42