161k views
3 votes
Chin-Lin Pon has a principal of $900 in her savings account. It earns 6

percent interest compounded quarterly. What is the amount in the
account at the end of the third quarter?

1 Answer

6 votes

Final answer:

To calculate the amount in the account at the end of the third quarter, use the formula for compound interest. In this case, the amount is $940.70.

Step-by-step explanation:

To calculate the amount in the account at the end of the third quarter, we need to use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, the principal is $900, the interest rate is 6% (or 0.06 as a decimal), and the interest is compounded quarterly (n = 4). We want to find the amount at the end of 3 quarters (t = 3/4).

Substituting these values into the formula:

A = 900(1 + 0.06/4)^(4 * 3/4) = 900(1.015)^3 = 900(1.045225) = $940.70

Therefore, the amount in the account at the end of the third quarter is $940.70.

User Raady
by
7.9k points