Question

Lacey deposited $4,860 in a new credit union savings account on the first day of the quarter. The principal earns 4% interest compounded quarterly for 6 months.(a) the amount

Answer 1

$4956.23 approx

Explanation:

Given data

P= $4860

R= 4%

T= 6 months = 0.5 years

Applying the compound interest formula we have

A=P(1+r)^t

Substitute

A=4860(1+0.04)^0.5

A= 4860(1.04)^0.5

A=4860*1.0198

A=4956.228

Hence the balance will be $4956.23 approx