Answer: $50.63 --- Interest
Step-by-step explanation:
Step 1
Using the formulae
A = P(1 + r/n)^nt
Where
A = principal + interest Amount
P = Principal Amount
= $1000
t = Time in years= 6months = 0.5 years
n = number of compounding periods= quarterly =4
Step 2
6 months = 6/12 = 0.5 years
Rate = 10 % = 0.1
A = P(1 + r/n)^nt
= 1000 ( 1 + 0.1/4)^(4 x 0.5)
=1000(1 +0.025)^2
= 1000(1.025)^2
= 1000 x 1.050625
A= $1,050.625
but A = principal + interest Amount
Interest = A- Principal=$1,050.625-$1,000
=$50.625
