The formula we will use is [tex]A(t)=P(1+ \frac{r}{n})^{(n)(t) [/tex], where A(t) is the amount we have at the end of the time, P is the initial investment amount, n is the number of times the money is compounded, r is the interest rate in decimal form, and t is the number of years we are investing. For us, P=1000, r=.035, n = 4 (quarterly is 4 times a year), and t = 5. Filling in accordingly, we have [tex]A(t)=1000(1+ \frac{.035}{4})^{(4)(5) [/tex]. Simplifying within the parenthesis we have [tex]A(t)=1000(1+.00875)^{20}[/tex]. Again simplfiying, [tex]A(t)=1000(1.00875)^{20}[/tex]. Raise the parenthesis to the power of 20 to get A(t) = 1000(1.190339799). Now we can multiply to find the amount at the end of it all. A(t) = $1,190.34
