Zoe deposits $500 into an account earning 5% interest compounded quarterly. She uses the compound interest formula A=P×(1+(r)/(n))^nt to calculate the interest she will earn after four years. Her work is shown: A=500×(1+(0.05)/(1))^1×4 What mistake did Zoe make?
Answer
A
She applied the interest for the wrong time period.
B
She used the incorrect formula.
C
She applied the wrong amount for the principal investment.
D
She did not adjust the interest rate for monthly compounding.