help me in this plz.

Question

3) You invest $2500 in an account paying 5% compounded quarterly for six years. How much will be in the account at the end of the time period?

Answer 1

(3).

Calculate the  Compound Interest by using formula for n compoundings per year :

A = P(1 + r/n) ^{n * t}, where A = balance, P = principal, t = time in years and r = annual interest rate (in decimal form).

Principal : P = $2500.

Annual interest rate : r = 5 % = 0.05.

For quarterly compounding : n = 4.

Time : t = 6 years.

To find the value of A in dollars, substitute P = 2500, r = 0.05, n = 4 and t = 6 in the above formula.

A = 2500(1 + 0.05/4) ^{4 * 6}

A = 2500(1.0125) ²⁴

A = $ 3,368.3776.

The amount at the end of the time period is  $ 3,368.38.