Set 11: Exponential Functions (Intermediate)

Choice A is correct. Choice A is the correct answer. Use the compound interest formula for quarterly compounding. 1. Values: $P = 2000$, $r = 0.08$, $n = 4$ (quarterly), $t = 2$. 2. Calculate: $A = 2000(1 + \frac{0.08}{4})^{4 \times 2} = 2000(1.02)^8$. 3. Compute: $(1.02)^8 \approx 1.17166$, so $A \approx 2343.32$. Strategic Tip: Quarterly means $n=4$, so divide rate by 4 and multiply time by 4. Choice B is incorrect because this assumes annual compounding, not quarterly. Choice C is incorrect because this uses simple interest. Choice D is incorrect because this calculation is incorrect.