Answer:
$942.27
Explanation:
The applicable formula for this case is A = p x ( 1 + r) ^ n
Where A is the amount after 5 years
p = Principal amount: $500
r = Interest rate : 8 % or 0.08 per year.
quarterly interest rate = 0.08/4 = 0.02
n = number of period : 8 year or 32 quarters (8 years x 4 )
A = $500 x (1 + 0.02) ^32
A= $500 x (1.02)^32
A =$500 x 1.88454
A=$942.27
Amount after five years will be $942.27
