$20000 is invested with quarterly compounding ...interest at the end of first quarter is:
(1) first quarter interests is 1% more than second quarter
(2) first quarter interests is $2 more than second quarter end
Are you sure this question is stated correctly? If you have compounded interest, the interest will always be higher in later periods, not less.
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993