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The principal of $2,500 earning 4% compounded quarterly after 4 years will be worth $3,084.16. This can be calculated by taking the original principal and multiplying it by 1 + (0.04/4), four times. Assuming the principal is $2500 and the interest rate is 4% compounded quarterly, after 4 years the total value would be $3076.44. This can be calculated by using the formula A = P(1 + r/n)^nt, where A is the future value, P is the principal amount, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years. In this case we would have A = 2500(1 + 0.04/4)^4*4. The reason we multiply by 4 at the end is because there are 4 quarters in a year. If you are looking to earn interest on your money, it's important to understand how compound interest works. Compound interest occurs when interest is earned not only on the original principal but also on any accumulated past interest. This can add up to a significant amount over time! In our example above, even though the initial investment was only $2500, after four years of compounding at a 4% rate, it has grown to be worth over $3000 - not bad! Credit: courses.lumenlearning.com How Much Will the 2500 Principal Earn After 4 Years If It is Compounded Quarterly Assuming you are asking about simple interest: The principal will earn $250 after 4 years. This is because simple interest is calculated by multiplying the principal by the interest rate, and then multiplying that product by the number of years. In this case, the principal is $2500, the interest rate is 0.25 (or 25%), and the number of years is 4. So 2500 x .25 x 4 = $250. What is the Effective Rate of Return for This Investment Assuming you are referring to an investment with a stated annual return of 10%, the effective rate of return would be 10%. This is because the periodic payments (e.g. monthly, quarterly) are equal and there is no compounding. However, if interest were compounded monthly, then the effective rate of return would be slightly higher than 10% since each payment would be earning interest on the previous payments. How Much Would the Principal Earn If It was Compounded Monthly Instead of Quarterly Assuming the rate of return is the same, the principal would earn more if it was compounded monthly instead of quarterly. This is because with monthly compounding, the interest earned in each month is added to the principal, so that the next month's interest is calculated on a higher base. With quarterly compounding, the interest earned each quarter is added to the principal, so that compound interest accrues less frequently. Future Value and Interest of Annuity Compounded Quarterly https://www.youtube.com/watch?v=s1aJWw2zOek $700 Principal Earning 2.25%, Compounded Quarterly, After 6 Years Assuming you're asking for an explanation of how this works: If you have $700 in a savings account that earns 2.25% interest, compounded quarterly, after 6 years you will have earned a total of $846.07 in interest. This means that your total balance would be $1,546.07 - made up of your original $700 principal, plus the $846.07 in interest that you've earned over 6 years. Here's a breakdown of what your account balance would look like after each year: Year 1: $718.44 ($700 principal + $18.44 in interest) Year 2: $737.48 ($718.44 principal + $19.04 in interest) Year 3: $757.14 ($737.48 principal +$19 65 in interest) Year 4: $777 45 ($757 14 principal + 20 31 in interest) Find the Balance in the Account. $800 Principal Earning 7%, Compounded Annually, After 4 Years Assuming you would like a blog post discussing how to find the balance in an account after 4 years: If you have an account that has $800 as the principal and it is earning 7% annually, compounding annually, then after 4 years, the balance in the account would be $1,034.88. To calculate this, you would use the formula for compound interest: A=P(1+r/n)^nt. In this case, A equals the final amount of money in the account, P equals the principal (initial investment), r equals the annual interest rate (7%), n equals number of times interest is compounded per year (annually), and t equals number of years invested (4). Plugging those values into the equation gives us A=$800(1+.07/1)^4=$1,034.88 for the final amount in the account after 4 years. Find the Balance in the Account. $2,400 Principal Earning 2%, Compounded Annually, After 7 Years Assuming you would like a blog post discussing how to find the balance of an account given the above information: If you have an account that has $2,400 as the principal and it's earning 2% annually, compounded annually, after 7 years, then you can use the following equation to calculate the balance of the account: Balance = Principal x (1 + Rate)^Time Plugging in the given values, we get: Balance = $2,400 x (1 + 0.02)^7 Find the Balance in the Account. $700 Principal Earning 5%, Compounded Monthly, After 9 Years It is no secret that saving money can be difficult. In fact, according to a recent survey, nearly 60% of Americans have less than $1,000 saved. However, it is important to remember that even small amounts of money can grow over time if they are placed in the right accounts. For example, let's say you have $700 in a savings account that earns 5% interest, compounded monthly. After 9 years, your account balance would be $1,040.87. While this may not seem like a lot of money, it is important to remember that compound interest allows your money to grow at an exponential rate. In other words, the longer you leave your money in the account, the more it will grow. Therefore, it is important to find the balance between spending and saving in order to reach your financial goals. Conclusion Assuming you are referring to a blog post titled "2500 Principal Earning 4% Compounded Quarterly After 4 Years", the author discusses how $2,500 invested at 4% interest compounded quarterly for four years will grow. At the end of the fourth year, the account will have earned $640 in interest and will be worth $3,140. The author goes on to explain that this is because each quarter, the interest earned is added to the principal, so that the next quarter's interest is calculated on a larger amount. This process is known as compounding.