Answer:
$150,858.5
Step-by-step explanation:
The formula for calculating compound interest is expressed as;
A = P(1+r/n)^nt
P is the Principal = $124000.00
r is the rate = 12% = 0.12
t is the total time = 2 years
n is the time of compounding = 1/4 = 0.25(quarterly)
Substitute into the formula;
A= 124000(1+0.12/(0.25))^(0.25)(2)
A = 124000(1+0.48)^0.5
A = 124000(1.48)^0.5
A = 124000(1.2166)
A = 150,858.5
The amount after 2 years if compounded quarterly is 150,858.5
