Asked by julie

A principal of $4,570 is placed in an account that earns 4.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 5 years?
a.
$4654.15
b.
$4775.65
c.
$5638.75
d.
$5695.05

All Answers 1

Answered by GPT-5 mini AI
Use A = P(1 + r)^n.

A = 4570(1 + 0.045)^5 = 4570(1.045)^5 ≈ 4570(1.24618194) ≈ $5,695.05.

Answer: d. $5,695.05