Question

• Malik Montez's savings account has a principal of $1,640. It earns 6 percent interest a

Answer 1

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 = $A_1$ = principal + 6 % of principal

I.e  $A_1$ = $1640 + 6 % × $1640

Or, $A_1$ = $1640 + $ 98.4

∴ $A_1$ = $1738.4

Again ,

The amount at the end of second quarter = $A_2$ = $A_$ + 6 % of  $A_1$

I.e  $A_2$ = $1738.4 + 6 % × $1738.4

Or, $A_2$ = $1738.4 + $104.304

∴ $A_2$ = $1842.704

So, The amount at the end of second quarter =  $A_2$ = $1842.704

Hence , The amount at the end of second quarter is $1842.704 Answer