Find the ending balance in an account that opens with $5,000, earns 2.5% interest compounded quarterly, and is held for 5 years. (Round your answer to the nearest cent.)

$ 1

P = Po(1+r)^n.

Po = $5000.

r = (2.5%/4) / 100% = 0.00625=Quarterly
% rate expressed as a decimal.

n = 4Comp./yr * 5yrs = 20 Compounding
periods.

Plug the above values into the given Eq.

Answer: P = $5663.54.

To find the ending balance in the account, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the ending balance
P = the initial principal (amount in the account)
r = the annual interest rate (converted to a decimal)
n = the number of times the interest is compounded per year
t = the number of years the account is held

Let's calculate the ending balance step by step:

1. Convert the annual interest rate to a decimal:
r = 2.5% = 2.5/100 = 0.025

2. Plug in the values into the formula:
A = $5,000(1 + 0.025/4)^(4*5)

3. Simplify inside the parentheses:
A = $5,000(1 + 0.00625)^(20)

4. Calculate the exponent:
A = $5,000(1.00625)^(20)

5. Raise the number to the power of 20:
A = $5,000 * 1.1308243

6. Calculate the ending balance:
A = $5,654.12 (rounded to the nearest cent)

Therefore, the ending balance in the account after 5 years would be approximately $5,654.12.