Answer:
$976.50
Step-by-step explanation:
Lets use the compound interest formula to solve:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
Lets change 6.75% into a decimal first:
6.75% -> [tex]\frac{6.75}{100}[/tex] -> 0.0675
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
[tex]A=500(1+\frac{0.0675}{4})^{4(10)}[/tex]
[tex]A=976.50[/tex]
The investment is worth $976.50 after 10 years.
