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Sagot :
Using compound interest, it is found that you would have $1524.86.
What is compound interest?
The amount of money earned, in compound interest, after t years, is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
In which:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
- t is the time in years for which the money is invested or borrowed.
In this problem, we have that the values of the parameters are given by: P = 1250, r = 0.05, n = 4, t = 4. Hence:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
[tex]A(4) = 1250\left(1 + \frac{0.05}{4}\right)^{4 \times 4} = 1524.86[/tex]
Tou would have $1524.86.
More can be learned about compound interest at https://brainly.com/question/25781328
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