The compound interest has the capacity to capitalize on the interest of the previous period, that is to say that it converts the interest earned in a period into capital for the following one, in this way the formula of the compound interest is:
[tex]V_{f} = V_{p} (1 + i)^n[/tex]
Where [tex]V_{f}[/tex] is the future value or capital that will remain, [tex]V_{p}[/tex] the present or initial value, [tex]i[/tex] the interest rate per period and [tex]n[/tex] the number of periods to be capitalized, in this case we have a present value of $2,500, a quarterly rate of 7.3% , that is to say 4 in a year, as they are 5 years, we obtain 4 * 5 = 20 periods, with this we calculate
[tex]2500(1+\frac{7,3}{100} )^{20} =10,231.39[/tex]
Answer
$ 10,231.39 will remain in the account
