Answer:
Amount after end of the year will be $1040.60
Explanation:
We have given principal amount P = $1000
Time is given t = 1 year
Rate of interest r = 4 %
As the amount is compounded quarterly so
Time period n = 4×1 = 4
Rate of interest [tex]=\frac{4}{4}=1%[/tex]
We know that amount which compounded is given by
[tex]A=P(1+\frac{r}{100})^n[/tex]
[tex]A=1000(1+\frac{1}{100})^4=1000\times 1.0406=$1040.60[/tex]
