Answer: $7444.32
Step-by-step explanation:
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 = $5000
r = 4% = 4/100 = 0.04
n = 4 because it was compounded 4 times in a year.
t = 10 years
Therefore,
A = 5000(1 + 0.04/4)^4 × 10
A = 5000(1 + 0.01)^40
A = 5000(1.01)^40
A = $7444.32
