Answer:
$1,164.80
Step-by-step explanation:
Lets use the compound interest formula provided to solve this:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, we need to change 6.5% into a decimal:
6.5% -> -> 0.065
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
The balance after 4 years will be $1,164.80