Offering 12 pts

after 3 years what is the total amount of an investment of $2500 in an account paying 2.5% interest, compounded quarterly?

$3362.22
$2611.45
$2694.08
$2971.71

$2,694.08

Step-by-step explanation:

PV = present value  

FV = future value (maturity value)  

Yrs = number of years  

P/Y = number payment per year  

APR = annual percentage rate  

i = interest rate in percent per period = APR / (P/Y)  

N = number of periods = Yrs * (P/Y)  

PV = $2,500.00  

Yrs = 3  

P/Y = 4  

APR = 0.025  

Pmt = $.00  

i = 0.025 / 4 = 0.00625  

N = number of periods = Yrs * (P/Y) = 3*4 = 12  

(1 + i)^N = 1.07763259885603  

FV = PV (1 + i)^N - Pmt (( 1+i)^N-1)/ i  

FV = 2500*1.07763259885603 - * ( 1.07763259885603-1)/ 0.00625  

FV = $2,694.08