Answer:
$5265.71
Step-by-step explanation:
We have been given that you deposit $3000 into a money-market savings account which pays 4.8% compounded quarterly.
We will use future value formula to solve our given problem.
[tex]FV=C_0\times (1+r)^n[/tex], where,
[tex]C_0=\text{Initial amount}[/tex],
r = Rate of return in decimal form,
n = Number of periods.
[tex]4.8\%=\frac{4.8}{100}=0.048[/tex]
[tex]n=3\times 4=12[/tex]
[tex]FV=\$3,000\times (1+0.048)^{12}[/tex]
[tex]FV=\$3,000\times (1.048)^{12}[/tex]
[tex]FV=\$3,000\times 1.7552354909370114[/tex]
[tex]FV=\$5265.7064\approx \$5265.71[/tex]
Therefore, there will be $5265.71 in your account at the end of those 3 years.
