Explanation:
The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years.
In this case, P = $300, r = 5%, n = 4 (since interest is compounded quarterly), and t = 20.
Plugging in these values, we get:
A = 300(1 + 0.05/4)^(4*20)
A = 300(1.0125)^80
A = 300(3.38696)
A = $1,016.09
Therefore, the investment will be worth $1,016.09 after 20 years. None of the answer choices are exactly right, but the closest one is $810.45, which is off by about 25%.