John deposited $10,000 to open a new savings account that earned 4 percent annual interest, compounded quarterly. If there were no other transactions in the account, what was the amount of money in John’s account 6 months after the account was opened? Choose the correct choice from the following options:
A) $10,100	B) $10,101	C) $10,200	D) $10,201	E) $10,400
Approach #1:   4 percent annual interest compounded quarterly --&gt; 1% in 3 moths.   For the first 3 moths interest was 1% of $10,000, so $100;   For the next 3 moths interest was 1% of $10,000, plus 1% earned on previous interest of $100, so $100+$1=$101;   Total interest for 6 months was $100+$101  100+ 1= 
<gadget id="calculator">  100+ 1</gadget>
<output>101</output>
$101;   Total interest for 6 months was $100+$101=$201, hence balance after 6 months was $10,000+ $201 100+ 101= 
<gadget id="calculator"> 100+ 101</gadget>
<output>201</output>
$201, hence balance after 6 months was $10,000+ $201=$10,201.   Answer: D.   Approach #2:   If the interest were compounded every 6 moths instead of every 3 months (quarterly) then in 6 months the interest would be 4%/2=2% of $10,000, so $200. Now, since the interest is compounded quarterly then there would be interest earned on interest (very small amount) thus the actual interest should be a little bit more than $200, only answer choice D fits.   Answer: $10,201.4 /2= 
<gadget id="calculator">4 /2</gadget>
<output>2</output>
2% of $10,000, so $200. Now, since the interest is compounded quarterly then there would be interest earned on interest (very small amount) thus the actual interest should be a little bit more than $200, only answer choice D fits.   Answer: $10,201.
<result>D</result>
John deposited $10,000 to open a new savings account that earned 4 percent annual interest, compounded quarterly. If there were no other transactions in the account, what was the amount of money in John’s account 6 months after the account was opened?