Answer: The account balance will be $6596 after 7 years.
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $4500
r = 5.5% = 5.5/100 = 0.055
n = 4 because it was compounded 4 times in a year.
t = 7 years
Therefore,.
A = 4500(1 + 0.055/4)^4 × 7
A = 4500(1 + 0.01375)^28
A = 4500(1.01375)^28
A = $6596
