Answer:
Travis will have $23,122.59 in his account at the end of seven years
Explanation:
Future value is the compounded value calculated using a specific time and specific rate too.
To calculate the balance after seven years use the following formula
Future value = Present value x ( 1 + periodic interest rate )^numbers of periods
Where
Future value = Balance after 7 years = ?
Periodic interest rate = 4% x 3/12 = 1%
Numbers of periods = 7 years x 12/3 = 28 periods
Placing values in the formula
Balance after 7 years = $17,500 x ( 1 + 1% )^28
Balance after 7 years = $23,122.59
