Determine the final value for Compound interest problems

The video tutorial explains how to solve a compound interest problem where $4000 is deposited in an account with a 2.92% annual interest rate compounded quarterly. The instructor introduces the compound interest formula and breaks down its components, including principal, rate, compounding frequency, and time. The tutorial demonstrates how to apply the formula step-by-step, emphasizing the importance of following the order of operations. The final calculation shows the amount earned after one year, concluding with a summary of the interest earned.

What is the initial deposit amount mentioned in the compound interest problem?

• $4000

• $3000

• $5000

• $2000

How often is the interest compounded in the given problem?

• Semi-annually

• Monthly

• Quarterly

• Annually

In the compound interest formula, what does the variable 'P' represent?

• Number of years

• Final amount

• Principal amount

• Interest rate

What is the decimal form of the annual interest rate given in the problem?

• 29.2

• 2.92

• 0.292

• 0.0292

What is the final amount after one year, as calculated in the problem?

• $4000

• $4181.09

• $4100.18

• $4118.09