Answer:
1299.43
Explanation: {'=raise to the power}
A= P(1+r/n) 'nt
A= final amount, P = principal amount, r= rate of interest per time, n =no of time periods, t = no of times interest compounds in a time period.
In this case: A= ? , P= 1200, t= year, n= no of years i.e 2, t = compounding in a year i.e 4 times (quarterly), r = APR 4%.
A= 1200 (1+ 0.04/4) '(2x4)
= 1200 (1+ 0.01) '(2x4)
= 1200 (1.01) '8
= 1200 (1.083)
= 1299.43
