Answer: $45451
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 25000
r = 3% = 3/100 = 0.03
n = 4 because it was compounded 4 times in a year.
t = 20 years
Therefore,
A = 25000(1+0.03/4)^4 × 20
A = 25000(1+0.0075)^80
A = 25000(1.0075)^80
A = $45451
