Answer: the amount in the account after 5 years is $7300
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 = 6000
r = 4% = 4/100 = 0.04
n = 1 because it was compounded once in a year.
t = 5 years
Therefore,.
A = 6000(1 + 0.04/1)^1 × 5
A = 6000(1.04)^5
A = $7300
