In the New Testament, Jesus commends a widow who contributed 2 mites to the temple treasury (Mark 12:42-44). A mite was worth roughly 1/8 of a cent. Suppose the temple invested those 2 mites at 4% interest compounded quarterly. How much would the money be worth 2000 years later?
Step 11 of 2
Formula for compound amount:
The interest rate per period is the annual interest rate divided by the number of compounding periods per year.
The number of compounding periods is the product of the number of compound periods per year and the time in years.
Evaluate the formula for the compound amount:
Thus the compound amount is .
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