Gabrielle inherited some money from her grandfather and put it in a bank account that earns 2% interest compounded quarterly. After 8 years, Gabrielle had 500.00 in the bank account. How much interest did she earn?

Solution

Solution

Interest : 73.76

Solution steps

Translate the problem into an equation:

500 = 426.24179 \dots + I

Solve for

I, 500 = 426.24179 \dots + I : I = 73.76

Interest : 73.76

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