A) P is the current value so P is $2,500.
r is the annual percentage rate which is 2.7% BUT it must be written as a decimal.
[tex] \frac{100 + 2.7}{100} = 1.027[/tex]
so r is 1.027.
n is 4 because it is compounded quarterly which is 4 times per year.
B) now substitute these values into the formula and now you know that t is 7 as it says in the question
[tex]2500 \times ({1 + \frac{1.027}{4} }^{7 \times 4} )[/tex]
when you type this into the calculator, you should round your answer to 2 decimal places as you are considering money.
therefore, the answer is $1,502,827.17
hope this helps! have a good day ~ •lipika•
