The deposit is for 1 year (4 quarters) at an annual rate of 5% (1.25% per quarter). The table value for those parameters is 1.05094. Multiply this value by the $1000 amount Miguel deposited to find his ending balance.
... ending balance = $1000 × 1.05094 = $1050.94
Since his deposit amount was $1000, the interest earned is ...
