The equation for compounding is: [tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
Where...
A=the final amount
P=the starting amount
r=the interest rate (as a decimal)
n=the number of times compounded per year
t=time (in year)
So therefore [tex]A=100(1+\frac{.02}{4} )^{4*1}[/tex]
A≅121.6
