Dylan invested $7,200 in an account paying an interest rate of 2.3% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 12 years?

$9,481.01

Step-by-step explanation:

The formula for compound amounts is

A = P(1 + r/n)^(nt), where n is the number of compounding periods per year, t is the number of years, P is the initial amount invested and r is the annual interest rate as a decimal fraction.

Here,

A = ($7,200)(1 + 0.023/4)^(12*4)

Evaluating this we get:

A = ($7,200)(1.00575)^48, or

A  = ($7,200)(`1.3168) = $9,481.01

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