Find the ending balance in an account that opens with $5,000, earns 7.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)
P = Po(1+r)^n.
Po = $5,000.
r = (7.5%/4) / 100% = 0.01875 = Quarterly % rate expressed as a decimal.
n = 4Comp/yr * 20yrs = 80 Compounding
periods.
Plug the above values into the given Eq
and get $22,099.26.