What interest will be earned if $12,000.00 is invested for 6 years at 8% compounded quarterly?

You would earn $
 in interest. (Round to 2 decimal places.)


To calculate the interest earned on an investment compounded quarterly, we can use the compound interest formula:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money accumulated after $t$ years, including interest.
- $P$ is the principal amount (initial investment).
- $r$ is the annual interest rate (in decimal form).
- $n$ is the number of times the interest is compounded per year.
- $t$ is the number of years.

In this case:
- $P = 12,000$
- $r = 8\% = 0.08$
- $n = 4$ (since the interest is compounded quarterly)
- $t = 6$ years

First, let's calculate the final amount $A$, and then subtract the principal $P$ to find the interest earned.

\[
A = 12000 \left(1 + \frac{0.08}{4}\right)^{4 \times 6}
\]

Now I will calculate the value.The interest earned on an investment of $12,000.00 over 6 years at an 8% annual interest rate compounded quarterly is **$7,301.25**.

Would you like further details or have any questions about this calculation?

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What interest will be earned if $12,000.00 is invested for 6 years at 8% compounded quarterly?

Learn how to calculate the interest earned on an investment of $12,000.00 over 6 years at an 8% annual interest rate compounded quarterly. This solution involves applying the compound interest formula, showing a step-by-step breakdown for students in Grades 10-12.

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