6. A person has $4000 in a savings account at the beginning of calendar year the

Question

6. A person has $4000 in a savings account at the beginning of calendar year the bank pays interest at 6% per year compounded quartery, what is the balance in the account at the end of the calendar year? Table 41 Date Effective Date Deposit Withdrawal Jan. 10 Feb. 20 Mar 31 Apr. 12Apr. 1 May 5 May 13June 30 May 24 jme 21Apr I Aug 10Sept so Sept. 12 Nov. 27Oct i Dec. 17 Dec. M Dec. 29Oct. 1 Jan. 1 s 175 $1200 1500 June 30 65 115 Apr I 250 t6oo July 1 380 2300 250 a. $10.500.45 b $5.200.34 C. $5.601.21 wrte your answer rir s oitterent trom me above

Explanation / Answer

ans :

initial balance = $4000

end of 1st quarter amount = 4000 -175 +1200 = $5025

interest on end of 1st quarter amount = 5025 * 0.06/4 = 75.375

beginning of 2nd quarter amount = 5025 + 75.375 = $5100.375

end of 2nd quarter amount = 5100.375 -1500 - 50 -250 +65 + 115 = $ 3480.375

interest on end of 2nd quarter amount = 3480.375 * 0.06/4 = 52.205625

beginning of 3rd quarter amount = 52.205625 + 3480.375 = $ 3532.580625

end of 3rd quarter amount = 3532.580625 + 1600 - 800 = $ 4332.580625

interest on end of 3rd quarter amount = 4332.580625 * 0.06/4 = $ 64.988709375

beginning of 4th quarter amount = 64.988709375 + 4332.580625 = $4397.56933437

end of 4th quarter amount = 4397.56933437 + 2300 - 350 - 750 = $5597.56933437

interest on end of 4th quarter amount = 5597.56933437 * 0.06/4 = $83.9635400156

total amount at end of the year = end of 4th quarter amount + interest on end of 4th quarter amount

= 5597.56933437 + 83.9635400156 = $5681.53287439

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