Answer:
The money will gavin have after 5 years is 1616.59$
Explanation:
We know that compound interest is given by
[tex]A=P\left(1+\frac{r}{n}\right)^{n t}[/tex]
Where A = final amount
P = Principal amount = $1500 (given)
r = interest rate = 1.5% = 0.015
n = no. of times interest applied per time period = given quarterly = 4
t = time period = 5 years
So,
[tex]A=1500\left(1+\frac{0.015}{4}\right)^{4 \times 5}[/tex]
[tex]1500\left(1+\frac{0.015}{4}\right)^{20}[/tex]
= 1616.59$ which is the money will gavin have after 5 years
