Question

Jacob deposited 9000 dollars in a bank which pays him 8% per annum compounded quarterly. What is the amount he will receive after 6 months?

Answer 1

Given,

Principal = 9000

Rate p.a. = 8%

Since rate is being charged quarterly then rate = 8/4 = 2%

Time = 6 months.

Since it is compounded on quarterly basis time will be = 6 months = 2 quarters.

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Amount = principal (1 + rate/100)^t

= 9000 (1 + 2/100)²

= 9000 (1 + 1/50)²

= 9000 * 51/50 * 51/50

= 9363.6

Hence he will get an amount of 9363.6 dollars.

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