Answer:
$9,481.01
Step-by-step explanation:
The formula for compound amounts is
A = P(1 + r/n)^(nt), where n is the number of compounding periods per year, t is the number of years, P is the initial amount invested and r is the annual interest rate as a decimal fraction.
Here,
A = ($7,200)(1 + 0.023/4)^(12*4)
Evaluating this we get:
A = ($7,200)(1.00575)^48, or
A = ($7,200)(`1.3168) = $9,481.01
