Question

Mr. Guny deposits $4,900 in a savings account that pays 3 1/2% interest compounded quarterly.

a. Find the first quarter’s interest.
b. Find the first quarter’s balance.
c. Find the second quarter’s interest.
d. Find the second quarter’s balance.
e. Find the third quarter’s interest.
f. Find the third quarter’s balance.
g. Find the fourth quarter’s interest.
h. Find the fourth quarter’s balance.
i. How much interest does the account earn in the first year?

Answer 1

9514 1404 393

Answer:

see attached

Explanation:

A spreadsheet performs these computations nicely. Each quarter's interest is 0.035/4 times the balance at the end of the previous quarter, rounded to the nearest penny. Each quarter's balance is the sum of the interest and the previous balance.

See the attached for the numbers requested.