Given:
Principal = $273
Interest rate = 5% compounded quarterly
time = 5 years
A = P (1 + r/n)^nt
A = amount of money accumulated plus interest
P = principal
r = interest rate (in decimal form)
n = number of times the interest is compounded per year
t = total number of years the amount is deposited
A = $273 (1 + 0.05/4)⁴*⁵
A = $273 (1 + 0.0125)²⁰
A = $273 (1.0125)²⁰
A = $273 * 1.2820
A = $349.99
$349.99 - 273 = $76.99
The compounded interest amounts to $76.99
Infinite.
By solving for slope-intercept form you will find that these two equations produce the same exact line.
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