Peter K. answered • 09/24/19

Experienced and Knowledgeable Mathematics and Physics Tutor

For compound interest, we have the formula:

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

where n is the number of times the principal amount is compounded per year (in this case n = 4 since its compounded quarterly). All the other variables are as you stated in the question. Now plug all the number in:

A = (47,000)(1 + (0.0275/4))^{(4)(8)}

= (47,000)(1 + 0.006875)^{32}

= (47,000)(1.006875)^{32}

= 58,521.53

There you have it. The accumulated amount A = $ 58,521.53.