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John deposited $10,000 to open a new savings account that [#permalink] ### Show Tags 01 Feb 2008, 13:08 This topic is locked. If you want to discuss this question please re-post it in the respective forum. John deposited$10,000 to open a new savings account that earned 4% annual interest,compounded quarterly. If there were no other transactions in the account, what was the amount of money in john's account 6 months after the account was opened?

1. $10,000 2.$10,101
3. $10,200 4.$10,201
5. $10,400 CEO Joined: 21 Jan 2007 Posts: 2756 Location: New York City Followers: 11 Kudos [?]: 850 [0], given: 4 Re: john [#permalink] ### Show Tags 01 Feb 2008, 13:12 blog wrote: John deposited$10,000 to open a new savings account that earned 4% annual interest,compounded quarterly. If there were no other transactions in the account, what was the amount of money in john's account 6 months after the account was opened?

1. $10,000 2.$10,101
3. $10,200 4.$10,201
5. $10,400 FV = PV ( 1 + i/n)^nt FV = 10000(1+ .04/4)^2(1) 4 _________________ You tried your best and you failed miserably. The lesson is 'never try'. -Homer Simpson CEO Joined: 29 Mar 2007 Posts: 2583 Followers: 19 Kudos [?]: 420 [0], given: 0 Re: john [#permalink] ### Show Tags 01 Feb 2008, 13:28 blog wrote: John deposited$10,000 to open a new savings account that earned 4% annual interest,compounded quarterly. If there were no other transactions in the account, what was the amount of money in john's account 6 months after the account was opened?

1. $10,000 2.$10,101
3. $10,200 4.$10,201
5. $10,400 I=P(1+r/n)^nt --> I=10000(1+.04/4)^4(1/2) ---> 10000(1+.01)^2 --> 1.01*1.01 = 1.021 so 10000*1.02 --> 10201 Please note this is a problem in which you have to pay attention to the answer choices. C and D are very close so you can't really afford to do any aproximation here. Senior Manager Joined: 26 Jan 2008 Posts: 267 Followers: 4 Kudos [?]: 101 [0], given: 16 Re: john [#permalink] ### Show Tags 01 Feb 2008, 13:48 blog wrote: John deposited$10,000 to open a new savings account that earned 4% annual interest,compounded quarterly. If there were no other transactions in the account, what was the amount of money in john's account 6 months after the account was opened?

1. $10,000 2.$10,101
3. $10,200 4.$10,201