Answer:
The balance in the account after the given period is \(\$5,352.90\)
Step-by-step explanation:
we know that
The compound interest formula is equal to
\(A=P(1+\frac{r}{n})^{nt}\)
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
\(t=5\ years\\ P=\$4,000\\ r=0.06\
=1\)
substitute in the formula above
\(A=\$4,000(1+\frac{0.06}{1})^{1*5}=\$5,352.90\)
