Answer:
The amount at the end of 4 years is $2,252.79.
Step-by-step explanation:
The amount formula for the compound interest compounded quarterly is:
[tex]A=P[1+\frac{r}{4}]^{4t}[/tex]
Here,
A = Amount after t years
P = Principal amount
t = number of years
r = interest rate
Given:
P = $1,250, r = 0.15, t = 4 years.
The amount at the end of 4 years is:
[tex]A=P[1+\frac{r}{4}]^{4t}\\=1250\times[1+\frac{0.15}{4}]^{4\times4}\\=1250\times1.80223\\=2252.7875\\\approx2252.79[/tex]
Thus, the amount at the end of 4 years is $2,252.79.
