Question 7 • Advanced Financial Algebra
Use the compound-interest formula with P = 5,000, r = 0.025, n = 4, and t = 1.25. The exponent is 4 × 1.25 = 5, so the balance is 5,000(1 + 0.025/4)^5 ≈ $5,158.22. Therefore, the correct choice is $5,158.22.
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