Trella Alcala deposited 1,950 in a new credit union savings account on the first of the quarter.The principal earns 4.25 percent interest compounded quarterly. She made no other deposits or withdrawals.

What was the amount in her account at the end 6 months?

Question

Trella Alcala deposited 1,950 in a new credit union savings account on the first of the quarter.The principal earns 4.25 percent interest compounded quarterly. She made no other deposits or withdrawals.

What was the amount in her account at the end 6 months?

anonymous · Answer

$$F=P \left( 1+\frac{ r }{ n } \right)^{nt}$$where
F = future value
P = present value
r = nominal annual interest rate
n = no. of compounding periods per year
t = no. of years

radar · Answer

Hint:  t=.5 (6 mos is 1/2 a year)