Final answer:
To calculate the future balance of Ashley's savings account with an annual interest rate of 3.4% compounded quarterly, we use the compound interest formula with the principal amount of $2000. After 4 years, the account balance would be approximately $2276.89.
Step-by-step explanation:
The student's question is asking how to calculate the future balance of a savings account with an annual interest rate that is compounded quarterly. This type of problem requires knowledge of the formula for compound interest. The formula for compound interest is A = P(1 + r/n)nt, where:
• A is the amount of money accumulated after n years, including interest.
• P is the principal amount (the initial amount of money).
• r is the annual interest rate (decimal).
• n is the number of times that interest is compounded per year.
• t is the time the money is invested for, in years.
To solve this problem for Ashley's deposit, we use the following values: P = $2000, r = 3.4% or 0.034, n = 4 (since interest is compounded quarterly), and t = 4 years. Plugging these values into the formula, we get
A = 2000(1 + 0.034/4)4*4.
Calculating this out, Ashley's account balance after 4 years, rounded to the nearest cent, will be approximately $2276.89.