If $1200 is invested for 1 year with the interest rate of 5.5%, final amount will be $1267.37
Expression for the final amount when compounded quarterly is given by,
Final amount = [tex]P(1+\frac{r}{4})^{4t}[/tex]
Here, P = Principal amount
r = Rate of interest
t = duration of investment
Values given in the question,
Substitute these values in the expression,
Final amount = [tex]1200(1+\frac{0.055}{4})^{4\times 1}[/tex]
= [tex]1200(1+\frac{0.055}{4})^4[/tex]
= [tex]1267.37[/tex]
Therefore, final amount when $1200 is invested for 1 year will be $1267.37
Learn more,
https://brainly.com/question/17262602
