Final answer:
To find the first quarter's interest and ending balance, multiply the principal by the rate and time, and then add the interest to the principal. Repeat this process for the second, third, and fourth quarters. To find the balance at the end of one year, use the fourth quarter's ending balance as the new principal. Sum up the interest for each quarter to find the total interest earned in the first year.
Step-by-step explanation:
To find the first quarter's interest, we can use the formula: Interest = Principal x Rate x Time. In this case, the principal is $3,500, the rate is 0.8% (which is equivalent to 0.008), and the time is one quarter (or 0.25 years). Therefore, the first quarter's interest is $3,500 x 0.008 x 0.25 = $7.00.
To find the first quarter's ending balance, we can add the interest to the principal. So the first quarter's ending balance is $3,500 + $7.00 = $3,507.00.
To find the second quarter's interest, we can use the same formula with the new principal (the first quarter's ending balance). So the second quarter's interest is $3,507.00 x 0.008 x 0.25 = $7.03.
To find the second quarter's ending balance, we can add the interest to the first quarter's ending balance. So the second quarter's ending balance is $3,507.00 + $7.03 = $3,514.03.
We can repeat this process for the third and fourth quarters to find the interest and ending balance for each quarter. To find the balance at the end of one year, we can use the same formula with the new principal (the fourth quarter's ending balance). And to find the total interest earned in the first year, we can sum up the interest for each quarter.