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.
