Zoe deposits $⁢500 into an account earning 5% interest compounded quarterly. She uses the compound interest formula A=P×(1+(r)/(n))^n⁢t to calculate the interest she will earn after four years. Her work is shown: A=500×(1+(0.05)/(1))^1×4 What mistake did Zoe make?

Question

Revolt · Accepted Answer

She applied the interest for the wrong time period.

Investment Opportunities - Test Test

Zoe deposits $⁢500 into an account earning 5% interest compounded quarterly. She uses the compound interest formula A=P×(1+(r)/(n))^n⁢t to calculate the interest she will earn after four years. Her work is shown: A=500×(1+(0.05)/(1))^1×4 What mistake did Zoe make?

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