You invest $15,000 in a savings account with an annual interest rate of 2.5% in which the interest is compounded quarterly. How much money should you expect to have in the account after 5 years? Show your work to receive full credit!

Answer:The Amount which should be expected in the account after 5 years is     $ 16,990.5Step-by-step explanation:Given as :The investment amount in saving account = $ 15,000The annual rate of interest = 2.5 % compounded quarterlyThe time period = 5 yearsLet the amount in account after 5 years = $ AFrom compounded methodAmount = Principal × [tex]( 1 +\dfrac{\textrm Rate}{100\times 4})^{4\times \textrm Time}[/tex]or, Amount = $ 15,000 × [tex]( 1 +\dfrac{\textrm 2.5}{100\times 4})^{4\times \textrm 5}[/tex]or, A =  $ 15,000 × [tex](1.00625)^{20}[/tex]Or, A =   $ 15,000 × 1.1327∴ A = $ 16,990.5So, Amount = A = $ 16,990.5Hence The Amount which should be expected in the account after 5 years is $ 16,990.5  Answer