Alicia Martin's savings account has a principal of $1,200. It earns 6% interest compounded quarterly for two quarters
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Me either has anyone got the answer?
To calculate the final amount in Alicia Martin's savings account after two quarters with a 6% interest rate compounded quarterly, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal (initial amount)
r = the interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years
Given that the principal (P) is $1,200, the interest rate (r) is 6% (or 0.06), and the interest is compounded quarterly (n = 4) for two quarters (t = 2/4 = 0.5 years), we can plug in these values into the formula:
A = $1,200(1 + 0.06/4)^(4 * 0.5)
First, divide the interest rate by the number of times interest is compounded per year:
A = $1,200(1 + 0.06/4)^(4 * 0.5)
Calculating inside the parentheses:
A = $1,200(1.015)^(4 * 0.5)
Next, multiply the number of times interest is compounded per year by the number of years:
A = $1,200(1.015)^(2)
Now, raise the value inside the parentheses to the power of 2:
A = $1,200(1.030225)
Multiply the principal by the result:
A = $1,200 * 1.030225
Calculating:
A ≈ $1,236.27
Therefore, after two quarters with a 6% interest rate compounded quarterly, Alicia Martin's savings account will have a final amount of approximately $1,236.27.