Use the compound interest formula, the formula A equals P times 1 plus r over n to the n times t power. If $10,000 is invested at 2 percent quarterly for 5 years, what is the amount at the end of the term?

A $11,052

B$11,049

C $11,046

D$11,051

Option B is the correct answer.

Step-by-step explanation:

Initial amount deposited into the account is $10000 This means that the principal is

P = 10000

It was compounded quarterly. This means that it was compounded for four times in a year. So

n = 4

The rate at which the principal was compounded is 2%. So

r = 2/100 = 0.02

It was compounded for 5 years. So

t = 5

The formula for compound interest is

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

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

A = 10000 (1+0.02/4) ^4*5

A = 10000 (1.005) ^20

A = $11049