The formula to calculate compound interest related problems is:
[tex]A=P((1+ \frac{r}{n})^{nt}) [/tex]
A is the total money earned (money from the lottery plus money from the interest); P is the money received from the lottery ($500,000.00); r is the percentage of interest (8% or 0.08); n is how many times the money is compounded in a year (in this case is quarterly, so, 4 times); and t is the number of years that the payment is being done for (10 years).
This would be the aftermath:
[tex]A=500,000.00((1+ \frac{0.08}{4})^{4*10}) [/tex] ⇔ [tex]A=1,104,019.83 [/tex]
The total money that Super Ball should deposit in Joan's account is $1,104,019.83.
