Molly Slate deposited $35,000 at Quazi Bank at 6% interest compounded quarterly.

a.) What is the effective rate (APY) to the nearest hundredth percent?

b.) What will Molly's balance be in a year?

A) The effective multiplier each year is

(1 + r/n) ^n = (1 +.06/4) ^4 = 1.061363550625

Then the effective rate is the percentage that is added to 1 to get this number,

6.14%

b) The year-end balance will be

$35,000*1.061363550625 ≈ $37,147.72