Tom deposits $2,000 into an account with an interest rate of 2.5% that is compounded quarterly. Rounding to the nearest dollar, what is the balance in Tom's account after 5 years?

The balance in Tom's account is = $ 2265.41

Step-by-step explanation:

Principal amount = $ 2000

Rate = 2.5 %

Time = 5 years

Since Amount is compounded quarterly so

New rate of interest =

Time = 5 × 4 = 20 years

Now the amount in the account is given by

A = $ 2265.41

Therefore the balance in Tom's account is = $ 2265.41

so, converting firstly the mixed fractions to improper fractions and then "adding".