1. **State the problem:** We deposit 1020 at the beginning of each quarter into a scholarship fund that earns 3% annual interest compounded quarterly. We want to find the total amount in the account after 5 years. 2. **Identify the formula:** This is an annuity problem with regular deposits and compound interest. The future value of an annuity compounded periodically is given by: $$ A = P \times \frac{(1 + r)^n - 1}{r} \times (1 + r) $$ where: - $P$ is the deposit per period, - $r$ is the interest rate per period, - $n$ is the total number of deposits, - The extra $(1 + r)$ factor accounts for deposits made at the beginning of each period (annuity due). 3. **Calculate parameters:** - Annual interest rate = 3% = 0.03 - Quarterly interest rate $r = \frac{0.03}{4} = 0.0075$ - Number of quarters in 5 years $n = 5 \times 4 = 20$ - Deposit per quarter $P = 1020$ 4. **Plug values into the formula:** $$ A = 1020 \times \frac{(1 + 0.0075)^{20} - 1}{0.0075} \times (1 + 0.0075) $$ 5. **Calculate intermediate values:** $$ (1 + 0.0075)^{20} = 1.0075^{20} \approx 1.1616 $$ $$ \frac{1.1616 - 1}{0.0075} = \frac{0.1616}{0.0075} \approx 21.547 $$ 6. **Calculate total amount:** $$ A = 1020 \times 21.547 \times 1.0075 $$ $$ A = 1020 \times 21.708 \approx 22132.16 $$ 7. **Final answer:** The amount in the account after 5 years is approximately **22132.16**.