Question

You deposit $250 in a bank account that offers compound interest at a rate of 5%, compounding quarterly. At the end of five years, your balance is:

Answer 1

5% compounded quarterly equals (1.0125)^4 -1=0.0509453369140625 or 5.09453369140625 % APR
250*(1.0125)^20=$320.51 at the end of 5 years
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