FDP's. Question Banks FDPs # 3

[david_malomo]

This is question 3 of the FDP question banks. I still don't understand how D=100 is the correct answer.

Question.
Donald plans to invest x dollars in a savings account that pays interest at an annual rate of 8% compounded quarterly. Approximately what amount is the minimum that Donald will need to invest to earn over $100 in interest within 6 months?

a) 1500
b) 1750
c) 2000
D) 2500
E) 3000

I don't understand how D which is 100 is the correct answer. This question says what do you need to invest to get over $100 in interest. 100 is not over 100, it is exactly 100.

[esledge]

"an annual rate of 8% compounded quarterly" means he gets a payment of 2% each quarter. Each interest payment, along with his original principal, earns 2% the next quarter.

Here's what happens if Donald invests $2500:
Beginning: $2500
after 3 months: $2500+$50 = $2550
after 6 months: $2550 +$51 = $2601 ($51 = 2% of $2550)

He received a total of $50 + $51 = $101 in interest.