The account would have accumulated to $6,612.57 in 7 years.
The interest rate given is an annual one so the first thing you need to do is to covert it to a monthly figure.
= 4 % / 12 months
= 1/3%
The number of periods is:
= 7 years x 12 months
= 84 months
The amount you will have in the account after 7 years is:
= Amount x ( 1 + rate) ^ number of periods
= 5,000 x ( 1 + 1/3%) ⁸⁴
= $6,612.569
= $6,612.57
In conclusion, you will have $6,612.57 in 7 years.
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