1. find the compound amount. round to the nearest cent. amount = $980 rate = 8% compounded = quarterly time (years) = 5 2. find the interest earned. round to the nearest cent. amount = $980 rate = 8% compounded = quarterly time (years) = 5

1) 
Principal Amount = P = $980
Interest rate = r = 8% = 0.08
Compounding periods = n = 4
Time = t = 5 years

Formula to be used for finding compounding amount:



Using the values in the formula, we get:



Therefore, the amount compounded over a period of 5 years will be $1456.23

2)
Principal Amount = $980
Compounded Amount = $1456.23
Interest Earned = Compounded Amount - Principal Amount
Interest Earned = 1456.23 - 980 = $ 476.23

Therefore, $476.23 interest will be earned over a period of 5 years.

Where is the qeustion