We're going to use the compounded intrest formula:
[tex]A = P(1+\frac{r}{n})^{nt}[/tex]
Where P is the initial cost
r is the rate as a decimal
n is the amount per year that you invest the rate
t is the amount of time at which you're checking how much it's worth (yrs)
Using this information, we can use:
[tex]A = 500(1+\frac{0.025}{4})^{3*4} \approx 538.82[/tex]
So your answer will be B.
