Anna is going to deposit $1,000 into an account that has an annual interest rate of 4% compounded quarterly.How much will she have at the end of one year?
A)$1,040.60
B)$1,040.00
C)$1,056.00
D)$1,460.00

Question

Quizplus · Accepted Answer

The amount in the account after one year with quarterly compounding interest can be calculated using the formula A = P(1 + r/n)^(nt), where P is the principal amount ($1,000), r is the annual interest rate (0.04), n is the number of times the interest is compounded per year (4), and t is the time the money is invested for in years (1). Plugging in the values, A = 1000(1 + 0.04/4)^(4*1) = $1,040.60.

Anna Is Going to Deposit $1,000 into an Account That