Question

Anna is going to deposit $1,000 into an account that has an annual interest rate of 4% compounded quarterly.

How much will she have at the end of one year?

Answer 1

Amount after end of the year will be $1040.60

Step-by-step explanation:

We have given principal amount P = $1000

Time is given t = 1 year

Rate of interest r = 4 %

As the amount is compounded quarterly so

Time period n = 4×1 = 4

Rate of interest
`=(4)/(4)=1%`

We know that amount which compounded is given by

`A=P(1+(r)/(100))^n`

`A=1000(1+(1)/(100))^4=1000* 1.0406=$1040.60`