Answer:
[tex]\$16,990.62[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
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
[tex]t=5\ years\\ P=\$15,000\\ r=2.5\%=2.5/100=0.025\\n=4[/tex]
substitute in the formula above
[tex]A=15,000(1+\frac{0.025}{4})^{4*5}[/tex]
[tex]A=15,000(1.00625)^{20}[/tex]
[tex]A=\$16,990.62[/tex]
