Answer:
$2195.80
Step-by-step explanation:
For a initial principal, P compounded with period k over n years at an annual interest rate, r, the amount (A(n)) at the end of n years is determined using the function:
[tex]A(n)=P(1+\frac{r}{k})^{nk}[/tex]
In the given case:
P=$1800
n=4 years
r=5%=0.05
Since it is compounded quarterly, Period, k=4
Therefore, the amount of money in the account after 4 years is:
[tex]A(n)=1800(1+\frac{0.05}{4})^{4*4}\\=1800(1+0.0125)^{16}\\=1800(1.0125)^{16}\\=\$2195.80[/tex]
After 4 years, there will be $2195.80 in the account.
