Answer:
The balance after 5 years will be $2,187.91.
Step-by-step explanation:
This problem can be solved by the following formula:
[tex]A = P(1 + r)^{t}[/tex]
In which A is the final amount(balance), P is the principal(the deposit), r is the interest rate and t is the time, in years.
In this problem, we have that:
[tex]P = 1800, r = 0.05, t = 4[/tex]
We want to find A
So
[tex]A = P(1 + r)^{t}[/tex]
[tex]A = 1800(1+0.05)^{5}[/tex]
[tex]A = 2,187.91[/tex]
The balance after 5 years will be $2,187.91.
