Answer:
[tex]A\simeq3250.83[/tex]
Step-by-step explanation:
The amount formula in compound interest is:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
where:
P = principal amount
r = annual interest
n = number of compounding periods
t = number of years
We already know that:
P = $2000
[tex]r = 7\% = \frac{7\%}{100\%}=0.07[/tex]
t = 7 (number of years from 6th to 13th bday)
n = 4 (quarterly in a year)
Then,
[tex]A=2000(1+\frac{0.07}{4} )^{(4)(7)}\\\\A=2000(1+\frac{0.07}{4} )^{28}\\\\A=3250.825792\\\\A\simeq3250.83[/tex]
