Answer:
A=$538.82
Step-by-step explanation:
We're going to use the compounded interest formula:
A=P(1+r/n)^n*t
Where,
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per unit t
t = t is the amount of time at which you're checking how much it's worth (yrs)
Using this information, we can use:
A=500(1+0.025/4)^3*4
A=500(1+0.00625)^12
A=500(1.00625)^12
A=500(1.07763259886)
A=538.82
A=$538.82....
