You have deposited $1,500 in an account that promises to pay 8% compounded quarterly for the next five years. How much will you have in the account at the end?

Question

Quizplus · Accepted Answer

We have:

- Principal (P) = $1,500
- Annual interest rate (r) = 8%
- Time (t) = 5 years
- Compounding periods (n) = 4 (quarterly)

We can use the formula for compound interest:

A = P(1 + r/n)^(n*t)

Plugging in the values, we get:

A = $1,500(1 + 0.08/4)^(4*5)
A = $2,228.92

Therefore, the amount you will have in the account at the end is $2,228.92. The closest answer choice is C.

You Have Deposited $1,500 in an Account That Promises to Pay