Question

2.
Tom Mathis deposited $1850 in a new credit union savings acu
earns 7.25% interest compounded quarterly. Hem
amount in his account at the end of 6 months?
redit union savings account on the first of a quarter. The principal
y. He made no other deposits or withdrawals. What was the

Answer 1

Answer:

The amount after 6 months compounded quarterly is $1917.66 .

Step-by-step explanation:

Given as :

The principal amount deposited in account =  $1850

The bank applied rate of interest = r = 7.25% compounded quarterly

The time period of loan = t = 6 months = 0.5 years

Let the Amount after 6 months = $A

Now, From quarterly Compound Interest method  

Amount = principal × $(1+\dfrac{\textrm rate}{4\times 100})^{4\times time}$

Or, A = p × $(1+\dfrac{\textrm r}{4\times 100})^{4\times t}$

Or, A = $1850 × $(1+\dfrac{\textrm 7.25}{4\times 100})^{4\times 0.5}$

Or, A = $1850 × $(1.018125)^{2}$

Or, A = $1850 × 1.036578

∴ A = $1917.66

i.e A = $1917.66

So, The amount after 6 months = A = $1917.66

Hence, The amount after 6 months compounded quarterly is $1917.66 . Answer