you deposit $5,000 in an account earning 3.2% interest compounded monthly. how much will you have in the…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (in decimal form), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years.

Step2: Convert values to appropriate form

We have $P=$5000$, $r = 3.2%=0.032$, $n = 12$ (compounded monthly), and $t = 0.9$ years.

Step3: Substitute values into formula

$A=5000(1 +\frac{0.032}{12})^{12\times0.9}$. First, calculate $\frac{0.032}{12}\approx0.002667$. Then $1+\frac{0.032}{12}=1 + 0.002667=1.002667$. Next, $12\times0.9 = 10.8$. So $A = 5000\times(1.002667)^{10.8}$. $(1.002667)^{10.8}\approx1.02947$. $A=5000\times1.02947=$5147.35$.

Answer:

$5147.35$