Matthew invests $500 into an account with a 2.5% interest that is compounded quarterly. How much money will he have in this account if he keeps it for 10 years? Round your answer to the nearest cent. Do NOT round until you have calculated the final answer.
Use the compound interest formula and substitute the given values: A=$500(1+0.0254)4(10). Simplify using the order of operations: A=$500(1.00625)40=$500(1.283026821)≈ $641.51.
