Isabelle invested $25,000 into an account that earns 3% annual interest compounded quarterly. If she makes no other deposits into the account, what will be the balance of her account in 20 years? Round to the nearest whole dollar.

$43451

$38451

$45451

$52451

Answer: $45451

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

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

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 25000

r = 3% = 3/100 = 0.03

n = 4 because it was compounded 4 times in a year.

t = 20 years

Therefore,

A = 25000 (1+0.03/4) ^4 * 20

A = 25000 (1+0.0075) ^80

A = 25000 (1.0075) ^80

A = $45451