Answer:
A = $2122.17
Explanation:
Before we start plugging everything in, we must convert the rate 7% to a decimal. Thus r = 0.07 as 7/100 = 0.07. Now we can plug in 1500 for P, 0.07 for r, 4 for k, and 5 for t in compound interest formula, then round to the nearest hundredth to find the amount, A:
A = 1500(1 + 0.07/4)^(4 * 5)
A = 1500(1.0175)^(20)
A = 2122.167294
A = 2122.17
Thus, the amount accumulated after investing $1500 for 5 years at an interest rate of 7% compounded 4 times per year is about $2122.17.