How much interest will $2,400 earn at an annual rate of 8% in one year if the interest is compounded every 4 months?	Choose the correct choice.
A) $141 B) $150 C) $197 D) $234 E) $312
Rate 8% compounded every 4 months = 8/3 %. Interest for the first 4 months = 8/3 % of 2400 = 8/3 * 2400 * 1/100= 
<gadget id="calculator">8/3 * 2400 * 1/100</gadget>
<output>64</output>
64.   Now in this particular scenario, the next 4 months will earn an interest on 2400, and an interest on 64.   For approximation, let's calculate total interest without considering interest on the interest earned. Thus total interest earned will be 64*3= 
<gadget id="calculator">64*3</gadget>
<output>192</output>
192   Now, we will earn some interest on this interest as well. So the total will be a little more than 192. And the only option that satisfies that is $197   . So the answer is option $197
<result>C</result>
How much interest will $2,400 earn at an annual rate of 8% in one year if the interest is compounded every 4 months?