Suppose that $4000 is deposited at 2% compounded quarterly. How much money will be in the account at the end of 6 years?

  $4,508.64

Step-by-step explanation:

The compound interest formula can answer this for you.

  A = P(1 +r/n)^(nt)

where A is the account balance, P is the principal invested (4000), r is the annual interest rate (.02), n is the number of times per year interest is compounded (4), and t is the number of years (6).

Putting the given values into the formula, doing the arithmetic tells us ...

  A = $4000(1 +.02/4)^(4·6) = $4000·1.005^24 ≈ $4,508.64

There will be $4,508.64 in the account at the end of 6 years.

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