Answer:
549192.188 $
Step-by-step explanation:
Compounded interest is calculated each year based on the starting amount of that year.
To calculate compounded interest the following formula is used
[tex]A = P[1 + (\frac{r}{t})]^n^t[/tex]
where
A = Amount at the end of the year
P = 4,200,000 (Principal amount at the start)
r = 0.054 (rate of interest, i.e. 5.4%)
n = 4 (compounding frequency in an year, i.e. quarterly)
t = 5 (number of years)
The solution will thus be
[tex]A = 4200000[1+\frac{0.054}{4}]^2^0[/tex]
A = 549192.188
