Answer:
$5,951.33
Step-by-step explanation:
We can use the compound interest formula to solve this problem:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 5.75% into a decimal:
5.75% -> [tex]\frac{5.75}{100}[/tex] -> 0.0575
Now, plug in the values:
[tex]A=4,500(1+\frac{0.0575}{1})^{1(5)}[/tex]
[tex]A=5,951.33[/tex]
After 5 years, the investment will be worth $5,951.33
