Initial deposit = P = $3600
Interest rate = r = 2.5% = 0.025
Compounding Frequency = n = 4
Time = t = 12 years
The formula to be used will be:
[tex]A=P(1+ \frac{r}{n})^{nt} [/tex]
Using the values, we get:
[tex]A=3600(1+ \frac{0.025}{4})^{4*12} =$ 4854.96[/tex]
Therefore, the balance after 12 years, rounded to the nearest pennies will be $4854.96
