Answer:
$5522.43
Explanation:
The amount in an account for a principal P saved at compound interest for a duration of n years compounded with period k at an annual interest rate of r% is calculated using the formula:
In this case:
- Principal, P=$5000
- Interest Rate, r=5%=0.05
- Time, n=2 years
- Period, k=4(Quarterly)
Therefore, the amount is:
The amount of money in the account at the end of the two years is $5522.43.