Final answer:
Sally would have approximately $1,010.10 in her savings account after a year if she deposited $1,000 in an account with a quarterly periodic rate of 1%.
Step-by-step explanation:
If Sally deposited $1,000 into a savings account that pays a quarterly periodic rate of 1%, to calculate how much she would have after a year, we need to use the formula for compound interest for quarterly compounding. The formula is A = P (1 + r/n)^(n*t), where:
- P is the principal amount (the initial amount of money)
- r is the annual interest rate (decimal)
- n is the number of times interest is compounded per year
- t is the time the money is invested for, in years
To apply this to Sally's situation:
- P = $1,000
- r = 1% or 0.01
- n = 4 (since interest is compounded quarterly)
- t = 1 year
Plugging these values into the formula gives us:
A = 1000 * (1 + 0.01/4)^(4*1) = 1000 * (1.0025)^4 = 1000 * 1.01009623 ≈ $1,010.10
Therefore, after one year, Sally would have approximately $1,010.10 in her savings account.