Questions: Find the compound interest and future value. Round your answers to the nearest cent. Do not round intermediate steps. Principal 530, Rate 4.35%, Compounded Quarterly, Time 2 years The future value is , and the compound interest is .

Find the compound interest and future value. Round your answers to the nearest cent. Do not round intermediate steps.
Principal 530, Rate 4.35%, Compounded Quarterly, Time 2 years

The future value is , and the compound interest is .

Transcript text: Find the compound interest and future value. Round your answers to the nearest cent. Do not round intermediate steps. $\begin{array}{cccc}\text { Principal } & \text { Rate } & \text { Compounded } & \text { Time } \\ \$ 530 & 4.35 \% & \text { Quarterly } & 2 \text { years }\end{array}$ The future value is $\$$ $\square$ , and the compound interest is $\$$ $\square$ .

Solution

Solution Steps

Step 1: Calculate the Future Value (FV)

To calculate the future value, we use the formula: \[ FV = P \left(1 + \frac{R}{n}\right)^{nT} \] Substituting the given values: \[ FV = 530 \left(1 + \frac{0.0435}{4}\right)^{4*2} = 577.9 \]

Step 2: Calculate the Compound Interest (CI)

The compound interest is calculated by subtracting the principal from the future value: \[ CI = FV - P \] Substituting the calculated FV and given P: \[ CI = 577.9 - 530 = 47.9 \]