Answer:
$1,539.63
Step-by-step explanation:
You are going to want to use the compound interest formula, which is shown below.
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate
n = number of times compounded annually
t = time
First, change 2.5% into its decimal form:
2.5% -> [tex]\frac{2.5}{100}[/tex] -> 0.025
Next, plug in the values into the equation:
[tex]A=1,200(1+\frac{0.025}{4})^{10(4)}[/tex]
[tex]A=1,539.63[/tex]
The answer is $1,539.63
