Given the word problem, we can deduce the following information:
1.
Principal Amount=$7,000
Interest rate = 6%
Time= 5 years
2. The investment is compounded quarterly so n or number of times interest applied per time period is 4.
To determine the final value, we can use the compound interest formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where:
A= Final amount
P= Principal amount
r=interest rate
n= number of times interest applied per time period
t= time
But based on the given table, the value of 5 periods at 6% is 1.33823 so we use this instead and multiply it with the Principal amount. So,
[tex]\begin{gathered} A=P(1.33823) \\ =(7000)(1.33823) \\ \text{Calculate} \\ A=9,367.61 \end{gathered}[/tex]
Therefore, the answer is $9,367.61.
