# After 4 years, Anne had $600.00 in the bank account. How much interest did she earn? (ROUND TO THE NEAREST CENT)

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Anne inherited some money from her grandfather and put it in a bank account that earns 10% interest compounded quarterly. After 4 years, Anne had $600.00 in the bank account. How much interest did she earn? (ROUND TO THE NEAREST CENT)

Anne inherited some money from her grandfather and put it in a bank account that earns 10% interest compounded quarterly. After 4 years, Anne had $600.00 in the bank account. How much interest did she earn? (ROUND TO THE NEAREST CENT)

##### 1 Answer

Jun 28, 2018

10% compounded quarterly is 2.5% per quarter

Over 4 years there would be

This gives us

Amount

Amount =

Amount = 404.1749601

600 - 404.1749601= 195.8250399

Interest earnt is $195.83