Question

Your bank pays 4% annual interest compounded quarterly on January 1, April 1, July 1, and October 1. You deposited $840 on April 1 and made no other deposits or withdrawals. Find your savings account balance on January 1 of the next year.

Answer 1

Deposit: = $600 on 1st April

Futher Depost = $200 on1st July

Interest rate = 2.60% per annum

Compounded = quarterly