Answer:
[tex]A(x)=\$5,000(1.04)^{x}[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nx}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
x is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]P=\$5,000\\ r=0.04\\n=12[/tex]
substitute in the formula above
[tex]A(x)=\$5,000(1+\frac{0.04}{12})^{12x}[/tex]
[tex]A(x)=\$5,000(\frac{12.04}{12})^{12x}[/tex]
[tex]A(x)=\$5,000(1.04)^{x}[/tex]
