Question

1. Mr. Gunny deposits $4,900 in a savings account that pays 1.5% interest compounded
quarterly.

A1. Find the first quarter's interest.

A2. 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.

Answer 1

Answer:

a) 18.38

b) 4918.38

c) 18.44

d) 4936.82

e) 18.51

f) 4955.33

Step-by-step explanation:

Given

A $= 4900$

r $= \frac{1.5}{100} =0.015$

m $= 4$

a)

I1

$= 4900 *( 1 +\frac{0.015}{4})^{4 *\frac{3}{12}} -4900\\= 4918.38-4900\\= 18.38$

b) $4918.38$

c)

$= 4918.38 *( 1 +\frac{0.015}{4})^{4 *\frac{3}{12}} -4918.38\\= 4936.82-4918.38\\= 18.44$

d) $4936.82$

e)

$= 4936.82 *( 1 +\frac{0.015}{4})^{4 *\frac{3}{12}} -4936.82\\= 4955.33-4936.82\\= 18.51$

f) $4955.33$