Math for Liberal Arts - Finance

Question

Sam invested $60,000 in an account which earns 8% compounded quarterly. How much will be in the account in 8 years?

Answer 1

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

A = 60,000(1 + .08/4)^4(8)

A = 60,000(1 + .02)^32

A = 60,000(1.02)^32

A = 60,000(1.8845)

A = $113,072.44