Question

A principal of $4,570 is placed in an account that earns 4.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 5 years?
a.
$4654.15
b.
$4775.65
c.
$5638.75
d.
$5695.05

Answer 1

Answer:

d

Step-by-step explanation:

Answer 2

The amount of money that will be in the account at the end of 5 years given the principal and annual compounding is $5695.05.

How much would be in the account after 5 years?

When interest is compounded annually, it means that both the principal and interest already accrued increases in value once in year.

The formula for calculating future value:

FV = P (1 + r)^nm

• FV = Future value
• P = Present value
• R = interest rate
• m = number of compounding
• N = number of years

$4750 x (1.045^5) = $5695.05

To learn more about future value, please check: https://brainly.com/question/18760477

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