Answer:
Future value = $755.61 ( to the nearest cent)
Step-by-step explanation:
The formula for calculating the future value of an invested amount compounded periodically for a number of years is given as:
where:
FV = future value = ???
PV = present value = $575
r = interest rate in decimal = 5.5% = 0.055
n = number of compounding periods per year = quarterly = 4
t = time of investment = 5 years
∴
∴ Future value = $755.61 ( to the nearest cent)