Answer:
D) 500(1 +.03/4)^(4(5))
Explanation:
You want to know the expression you would input to a calculator to find the money Joe will have in his account from a $500 deposit earning 3% interest compounded quarterly for 5 years.
Account value
The value of the account is given by the formula ...
A = P(1 +r/n)^(n·t)
where P is the principal invested, r is the annual rate, n is the number of times per year interest is compounded, and t is the number of years.
Filling in the given values, you would want your calculator to evaluate ...
500(1 +.03/4)^(4(5)) . . . . . . . matches choice D
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Additional comment
The attachment shows a couple of different calculator inputs that could be used to find the account value. Note that the product (4)(5) is the exponent of the base (1 +.03/4). This calculator uses the caret (^) key to open the exponent expression.
The calculator also has a "future value" function that will compute the same result.
The value in the account will be $580.59.
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