Question 9, 8.4.7
HW Score: $28.18 \%, 6.2$ of 22
Part 1 of 2 points
Points: 0 of 1
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The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Answer parts (a) and (b).
\begin{tabular}{|c|c|c|c|}
\hline Principal & Rate & Compounded & Time \\
\hline$\$ 5000$ & $4.5 \%$ & monthly & 4 years \\
\hline
\end{tabular}
i Click the icon to view some finance formulas.
a. Find how much money there will be in the account after the given number of years.
The amount of money in the account after 4 years is $\$ \square$
(Round to the nearest hundredtiı as needed.)
Answer
\(\boxed{A = 5978.09}\)
Step 1 ：\(r = \frac{0.045}{12} = 0.00375\)
Step 2 ：\(A = 1 + r = 1 + 0.00375 = 1.00375\)
Step 3 ：\(A = (1.00375)^{12 \times 4} = 1.195618\)
Step 4 ：\(A = P \times A = 5000 \times 1.195618\)
Step 5 ：\(\boxed{A = 5978.09}\)
