We will have the following:
a) The amount after one year will be:
[tex]\begin{gathered} A=6700(1+\frac{0.095}{4})^{4\ast1}\Rightarrow A=7359.53647... \\ \\ \Rightarrow A\approx7359.54 \end{gathered}[/tex]
So, the amount after 1 year will be approximately $7359.54.
b) The effective annual interest rate will be:
[tex]eair=(1+\frac{0.095}{4})^4-1\Rightarrow eair=0.0984382791...[/tex]
So, the effective annual interest rate will be approximately 9.84%.
