Apply the compound interest formula:
A = P (1+r/n)^nt
where:
A = future vale
P = Principal investment = $2000
r= interest rate (decimal form) = 3.5 /100= 0.035
t= years
n= number of compounding periods per year (4)
Replacing:
A = 2000 (1 + 0.035/4)^4(5)
A = 2000 ( 1.00875)^20
A= $2,380.68
