If a principal amount of $1000 earns 5% annual interest compounded quarterly, what will be the amount after 1 year?

اگر 1000$ کی اصل رقم سہ ماہی کے حساب سے %5 سالانہ سود حاصل کرتی ہے، تو 1 سال کے بعد رقم کیا ہوگی؟

$1050.00

$1051.16

$1052.00

$1060.00

When interest is compounded quarterly, the interest is calculated and added to the principal every quarter.

In this case, the interest rate is 5% per year, which is equivalent to 1.25% per quarter.

After one year, the total interest earned would be $51.16, making the final amount $1000 + $51.16 = $1051.16.