Answer:
$14,859.47
Step-by-step explanation:
Lets use the compound interest formula provided to solve this:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First change 8% into a decimal:
8% -> [tex]\frac{8}{100}[/tex] -> 0.08
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
[tex]A=10,000(1+\frac{0.08}{4})^{4(5)}[/tex]
[tex]A=14,859.47[/tex]
The balance after 5 years is $14,859.47
