Answer:
$5,593.60
Step-by-step explanation:
Lets use the compound interest formula provided to solve this:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 2.25% into a decimal:
2.25% -> [tex]\frac{2.25}{100}[/tex] -> 0.0225
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
[tex]A=5,000(1+\frac{0.0225}{4})^{4(5)}[/tex]
[tex]A=5,593.60[/tex]
The balance will be $5,593.60
