Answer:
Step-by-step explanation:
We are going to be using the compound interest formula
Given data
principal P= $5000
N is time = 7 years
rate r= 2.5%= 0.025
compounded monthly k= 112
final amount A=?
The expression for the compound interest is
[tex]A= P(1+\frac{r}{K} )^K^N[/tex]
substituting into the expression we have
[tex]A= 5000(1+\frac{0.025}{12} )^1^2^*^7\\\\ A= 5000(1.002 )^1^2^*^7\\\\ A= 5000(1.002 )^8^7\\\\A= 5010*1.18273815853 \\\\ A= 5925.51[/tex]
in seven years he will have $5925.51
