Trella Alcala deposited 1,950.00 in a new credit union savings account on the first of the quarter. The principal earns 4.25% interest compounded quarterly. She made no other deposits or withdrawals.
What was the amount in her account at the end of 6 months? What was the compound interest?
Please explain to me how to get the answer.

Question

Trella Alcala deposited 1,950.00 in a new credit union savings account on the first of the quarter. The principal earns 4.25% interest compounded quarterly. She made no other deposits or withdrawals.
 What was the amount in her account at the end of 6 months? What was the compound interest? 
Please explain to me how to get the answer.

anonymous · Answer

6 month is equal to 2 quarters

anonymous · Answer

so A=1950(0.045)^2

anonymous · Answer

1950(1.045)^2

ganeshie8 · Answer

P = 1,950
r = 4.25 % = .0425
n = 6 months = 2 quarters
t = 1/2 years


use the formula,

$\huge Pnew = P(1+\frac{r}{n})^{n*t} $

ganeshie8 · Answer

oops - typo there


n = 4 months = 4

anonymous · Answer

oh ok, Thank you. I did not understand what quarterly was. That was really confusing me.

ganeshie8 · Answer

$\huge Pnew =  1950 * (1+\frac{.0425}{4})^{4*\frac{1}{2}}$

ganeshie8 · Answer

np :)

anonymous · Answer

I will try out your formula. Thank you.