Answer:
$918.86
Step-by-step explanation:
You want the value of an account in which $800 is invested for 5 years earning interest of 2.78% compounded quarterly.
Account value
The account value is given by the formula ...
A = P(1 +r/n)^(nt)
where P is the principal amount, r is the annual interest rate, n is the number of times per year interest is compounded, and t is the number of years.
A = $800(1 +0.0278/4)^(4·5) ≈ $918.86
The value of the account after 5 years is $918.86.
