Answer
$8,193.08
Explanation
Compound interest formula
where
• A: final amount
,
• P: principal (initial amount)
,
• r: interest rate, as a decimal
,
• n: number of times interest is applied per year
,
• t: time in years
Substituting P = $5,000, r = 0.1 ( = 10/100), n = 4 (quarterly means 4 times per year), and t = 5 years, we get:
![\begin{gathered} A=5,000\cdot(1+(0.1)/(4))^(4\cdot5) \\ A=5,000\operatorname{\cdot}(1.025)^(20) \\ A=\text{ \$}8,193.08 \end{gathered}]()