Answer:
4
Step-by-step explanation:
The compound interest equation is ...
B(t) = P(1 + r/n)^(nt)
where r is the annual interest rate and n is the number of times per year it is compounded.
Comparing this general formula to the given equation, we see that ...
- P = 124
- r = .05 = 5%
- n = 4 . . . . (compounded quarterly, 4 times per year)
- t = (still a variable representing the number of years)
