The interest earned on the amount will increase the net balance. The balance of Lynne's account in 5 years would become $76,689.31 approximately.
How to calculate compound interest's amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% per unit time, and it is left for T unit of time for that simple interest, then the interest amount earned is given by:
[tex]CI = P(1 +\dfrac{R}{100})^T - P[/tex]
And thus, final amount will be:
[tex]A = P + CI = P(1 +\dfrac{R}{100})^T[/tex]
For the given case, the principal amount (initial amount) Lynne invested is P = 35000 (in dollars)
The rate of interest = 4% compounding quarterly.
Here, unit of time is is quarter of an year which means 1/4 of an year.
The time is given to be 5 years. In each year, there are 4 quarters, so in 5 years, there would be 20 quarters of years.
Thus, T = 20 (we always need to keep unit of time same for R and T for using that formula).
Putting these values in the above formula, we get the final amount's value in Lynne's account in 5 years as:
[tex]A = P(1 + \dfrac{R}{100})^T = 35000 ( 1 + \dfrac{4}{100})^{20} = 35000(1.04)^{20}\\\\A \approx 76689.31 \: \rm \text{(in dollars)}[/tex]
Thus, the balance of Lynne's account in 5 years would become $76,689.31 approximately.
Learn more about compound interest here:
https://brainly.com/question/11897800
