Stacy Henry deposited $20,000 in a money market certificate that provides interest of 12% compounded quarterly if the amount is maintained for 2 years. How much will Stacy Henry have at the end of 2 years? (Round factor values to 5 decimal places, e. g. 1.25124. Round answers to the nearest whole dollar, e. g. 5,250.) using calculator

Total amount Stacy Henry will have after 2 years=$25,335

Explanation:

To calculate the compound interest, we cause the formula for calculating compound interest;

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

where;

A=future value of the investment

P=Principal amount invested

r=annual interest rate

n=number of times the interest is compounded per unit time

t=time the money is invested for

In our case we are given;

P=$20,000

r=12%=12/100=0.12

n=every three months a year=12/3=4

t=2 years

replacing in the formula above;

A=20,000 (1+0.12/4) ^ (4*2)

A=20,000 (1+0.03) ^8

A=20,000*1.26677

A=25,335

Total amount Stacy Henry will have after 2 years=$25,335