josiah181
Answered

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Jonathan deposits $6,000 in a savings account that pays 2.1% interest compounded
quarterly. What is his balance after one year?


Sagot :

Given:

Principal= $6000

Rate of interest = 2.1% compounded quarterly.

To find:

The balance after one year.

Solution:

The formula for amount is:

[tex]A=P\left(1+\dfrac{r}{n}\right)^{nt}[/tex]

Where, P is principal, r is rate of interest, n is number of times interest compounded in an year and t is number of years.

We have, P=6000, r=0.021, n=4 and t=1.

Putting these values in the above formula, we get

[tex]A=6000\left(1+\dfrac{0.021}{4}\right)^{4(1)}[/tex]

[tex]A=6000\left(1+0.00525\right)^{4}[/tex]

[tex]A=6000\left(1.00525\right)^{4}[/tex]

[tex]A=6126.9957[/tex]

[tex]A\approx 6126.996[/tex]

Therefore, the balance after one year is $6126.996.

Answer:

C. $7,800

Step-by-step explanation:

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