8. A savings account earns 4% annual interest compounded quarterly. How much interest would $500 earn if it was invested for one year?* OA. $20.00 OB. $20.30 OC. $54.20 OD. $84.93 OE. $200.00

Answer:$20.30 Step-by-step explanation:Given : A savings account earns 4% annual interest compounded quarterly. To Find : How much interest would $500 earn if it was invested for one year?Solution:Rate of interest = r = 4% = 0.04Principal = $500T = 1 yearn = No. of compounds per year = 4Formula : [tex]A=P(1+\frac{r}{nt})^{nt}[/tex]Substitute the values [tex]A=500(1+\frac{0.04}{4})^{4}[/tex] [tex]A=520.30[/tex]Interest = Amount - principal = $520.30-$500=$20.30Hence $500 would earn $20.30 if it was invested for one year.So, Option B is true .