Respuesta :
Answer:
Therefore after 6 months, I shall have $103.0225 in the account.
Explanation:
Given that,
The deposit (P) = $100
the rate of interest (r)= 6% [tex]=\frac{6}{100}= 0.06[/tex]
Time(t) = 6 month = [tex]\frac{6}{12} yr = \frac{1}2 \ yr[/tex]
Given that the interest is compound quarterly.
We use the following formula to find out the amount after 6 month.
[tex]A= P(1+\frac{r}{n})^{nt}[/tex]
Since the interest is given compound quarterly, then the value of n =4.
[tex]\therefore A= \$[100(1+\frac{0.06}{4})^{4.\frac12}][/tex]
=$103.0225
Therefore after 6 months, I shall have $103.0225 in the account.
Answer:
The amount which is in account amounts to $103.02
Explanation:
The amount which is in account is computed using the excel formula of Future value as:
=FV(rate,nper,pmt,pv,type)
where
FV is Future value
rate is 6%
But it is compounded quarterly. So,
Rate is 6% / 4 (as there are 4 quarters)
nper is number of years, which is 6months
nper is 6 *4/12
nper is 4/2
pv is -$100
Pmt is $0
Putting the values above:
=FV(6%/4,4/2,0,-100,0)
= $103.02
