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photoshop1234 [79]
2 years ago
9

1 poir

Mathematics
1 answer:
poizon [28]2 years ago
8 0

9514 1404 393

Answer:

  $1790.99

Step-by-step explanation:

<u>Given</u>:

  $1625 is invested at an annual rate of 1.95% compounded quarterly for 5 years

<u>Find</u>:

  the ending balance

<u>Solution</u>:

The compound interest formula applies.

  FV = P(1 +r/n)^(nt) . . . Principal P at rate r for t years, compounded n per year

  FV = $1625(1 +0.0195/4)^(4·5) = $1625(1.004875^20) ≈ $1790.99

The account ending balance would be $1790.99.

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