The final balance after 1 year with initial value $1000 if the interest is compounded quarterly will be $1215.5
What is compound interest?
Compound interest is computed as interest on the initial principal plus any accrued interest from prior periods. The power of compound interest is the creation of "interest on interest."
We are given that she initially invested $1000 and that she get 5% and interest is compounded quaterly.
After 3 months the interest will be
I = 1000*(5/100)
I = 50
So the total amount becomes
$1050 after 3 months
Now after 3 months again 5% interest will be credited
Hence the amount becomes
I1 = 1050*(5/100)
I1 = 52.5
Hence the total amount becomes
1102.5 after 6 months
After 9 months the interest will be
I2 = 1102.5*(5/100)
I2 = 55.12
Hence the total amount becomes
$1157.62 after 9 months
After 1 years the interest will be
I3 = 1157.62*(5/100)
I3 = 57.88
Hence the total amount becomes $1215.5
To learn more about the Compound interest please refer the following link
https://brainly.com/question/28757680
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