Question

Suppose $2000 is deposited in an account paying 2.5% interest compounded quarterly. What will the account balance be after 12 years?

Answer 1

A =
$p(1 + \frac{r}{n})^{nt}$
p = principal amount (the initial amount you borrow or deposit)
r  = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n  =  number of times the interest is compounded per year 

$2000(1 + \frac{.025}{4})^{4 \times 12}$
$2,697.20