Answer:
$2147.85
Explanation:
To find the ending balance after 7 years, compounded quarterly at 7% annual interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the ending balance
P = the initial deposit amount ($1500)
r = the annual interest rate (7% or 0.07 as a decimal)
n = the number of times the interest is compounded per year (4 for quarterly)
t = the number of years (7)
Plugging in the given values into the formula, we get:
A = 1500(1 + 0.07/4)^(4*7)
Now, let's calculate it step by step:
1. Calculate the value inside the parentheses:
(1 + 0.07/4) = 1.0175
2. Raise the value inside the parentheses to the power of (4*7):
(1.0175)^(4*7) ≈ 1.0175^28 ≈ 1.431900676
3. Multiply the initial deposit by the calculated value from step 2:
1500 * 1.431900676 ≈ 2147.85
So, the ending balance after 7 years, compounded quarterly at 7% annual interest, would be approximately $2147.85.