Charles Johnson deposited $4,400 in a savings account earning 6% interest compounded quarterly. If he makes no other deposits or withdrawals, how much will his money earn in two years?

the anwser is 26,400

Answer: he will earn $4956.6 in two years

Step-by-step explanation:

Initial amount deposited by Charles Johnson into the account is $4,400

This means that the principal is P

P = 4400

It was compounded quarterly. This means that it was compounded once in four months. Therefore,

n = 4

The rate at which the principal was compounded is 6%. So

r = 6/100 = 0.06

It was compounded for a total of 2 years. Therefore

t = 2

The formula for compound interest is

A = P (1+r/n) ^nt

A = total amount in the account at the end of n years.

A = 4400 (1+0.06/4) ^4*2

A = 4400 (1+0.015) ^8

A = 4400 (1.015) ^8

A = $4956.6