Answer:
16990.616 $ you can expect to have in your account after five years.
Step-by-step explanation:
Given that,
Amount invested is principal amount (p) = $ 15000
Annual rate of interest (r) = 2.5% = 0.025
Compounded quarterly (n) = 4
Sum of the amount after 5 years (t)
We know that from compound interest formula,
[tex]\text { Final amount }(\mathrm{A})=P\left(1+\frac{r}{n}\right)^{n t}[/tex]
To find the final amount substitute the given values in the above formula,
[tex]\text { Final amount }(\mathrm{A})=15000\left(1+\frac{0.025}{4}\right)^{4 \times 5}[/tex]
[tex]\text { Final amount }(\mathrm{A})=15000\left(1+6.25 \times 10^{-3}\right)^{20}[/tex]
[tex]\text { Final amount }(\mathrm{A})=15000(1.00625)^{20}[/tex]
[tex]\text { Final amount }(\mathrm{A})=15000 \times 1.132707738[/tex]
Final amount (A) = 16990.62
The final amount that he can expect is $ 16990.62.
