A man invests $2000 in an account that pays 8.5% interest per year, compounded quarterly. (a) find the amount after 2 years? (round your answer to the nearest cent.)

A man invests $2000 into an account that accrues 8.5% interest compounded quarterly. He made the deposit of 2 years, i. e. for 8 quarters (or 8 compounding periods)

Amount after n years is calculated by following equation:

Amount = Principal * (1 + Interest rate per compounding period) ^ no. of compounding periods

The amount in his account after 2 years = 2000 * (1 + 0.085/4) ^ 8

= 2000 * (1.02125) ^ 8

= 2000 * 1.18319

= $2366.39