Answer:
The investment will grow to approximately 2,331.94 at the end of 5 years.
Explanation:
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
where:
A = the amount at the end of the investment period
P = the principal amount (initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, we have:
P = 1,000 (initial deposit)
r = 0.12 (12% annual interest rate)
n = 4 (compounded quarterly, so 4 times per year)
t = 5 (the investment period is 5 years)
So the formula becomes:
A = 1,000(1 + 0.12/4)^(4*5) = 1,000(1.03)^20 ≈ 2,331.94
Therefore, the investment will grow to approximately 2,331.94 at the end of 5 years.
Hope this helps, I'm sorry if it doesn't. If you need more help, ask me! :]