Answer:
The amount at the end of second quarter is $1842.704
Step-by-step explanation:
Given as :
The principal in saving account = $1640
The rate of interest = 6 % compounded quarterly
The time period = 6 months
Now, from compounded method
The amount at the end of first quarter = [tex]A_1[/tex] = principal + 6 % of principal
I.e [tex]A_1[/tex] = $1640 + 6 % × $1640
Or, [tex]A_1[/tex] = $1640 + $ 98.4
∴ [tex]A_1[/tex] = $1738.4
Again ,
The amount at the end of second quarter = [tex]A_2[/tex] = [tex]A_[/tex] + 6 % of [tex]A_1[/tex]
I.e [tex]A_2[/tex] = $1738.4 + 6 % × $1738.4
Or, [tex]A_2[/tex] = $1738.4 + $104.304
∴ [tex]A_2[/tex] = $1842.704
So, The amount at the end of second quarter = [tex]A_2[/tex] = $1842.704
Hence , The amount at the end of second quarter is $1842.704 Answer
