Question

Rahul deposits $5000.00 in an account on April 1, 2016 which earns 6.25% compounded quarterly. How much is in the account on September 15, 2021 if simple interest is allowed for part of a conversion period?

Answer 1

Amount deposited on Apr1, 2016.

No. of periods till mar 31,2021 = 20 Periods [ 5 * 4 ]

Apr to June = 1 Period

July 1st to September 15 = 2 Months 15 days

Amount after 30 June,2021 :

FV = PV( 1 + r)^n

Where r is Int rate per period
n - No. of periods

Particulars	Amount
Present Value	$      5,000.00
Int Rate	1.563%
Periods	21

Future Value = Present Value * ( 1 + r )^n

= $ 5000 ( 1 + 0.0156) ^ 21

= $ 5000 ( 1.0156 ^ 21)

= $ 5000 * 1.3848

= $ 6924.22

Amount on June 30 , 2021 = $ 6924.22

Int for Balance 2 Months 15 Days = PTR

= 6924.22 *( 2.5 / 12 )* 6.25%

= $ 90.16

Amount on Sep 15 , 2021 = $ 6924.22 + $ 90.16

= $ 7014.38

Pls do rate, if the answer is correct and comment, if any further assistance is required.