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.
