$2,000 is invested in an account with a 2% interest rate that is compounded quarterly. how much money is in…

Answer:

$2040.30

Explanation:

Step1: Identify compound - interest formula

$A = P(1+\frac{r}{n})^{nt}$

Step2: Define variables

$P = 2000$, $r=0.02$, $n = 4$, $t = 1$

Step3: Substitute values into formula

$A=2000(1 +\frac{0.02}{4})^{4\times1}$

Step4: Calculate inside the parentheses

$1+\frac{0.02}{4}=1 + 0.005=1.005$

Step5: Calculate the exponent

$(1.005)^{4}=1.020150500625$

Step6: Multiply by principal

$A = 2000\times1.020150500625=2040.301$

Step7: Round to nearest cent

$A\approx2040.30$