Answer:
1,616.60
Step-by-step explanation:
we know that
The compound interest formula is equal to
A=P(1+\frac{r}{n})^{nt}A=P(1+
n
r
)
nt
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
\begin{gathered}t=5\ years\\ P=\$1,500\\ r=1.5\%=1.5/100=0.015\\n=4\end{gathered}
t=5 years
P=$1,500
r=1.5%=1.5/100=0.015
n=4
substitute in the formula above
A=1,500(1+\frac{0.015}{4})^{4*5}A=1,500(1+
4
0.015
)
4∗5
A=1,500(1.00375)^{20}A=1,500(1.00375)
20
A=\$1,616.60A=$1,616.60
