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