Answer:
He'll have approximately $8723.3 on his account in five years.
Step-by-step explanation:
Since the amount invested is compounded yearly, we can calculate the amount he'll have in 5 years by using the following expression:
[tex]M = C*(1 + r)^t[/tex]
Where M is the final amount, C is the invested money, r is the interest rate and t is the time elapsed in years. Applying the data from the problem we have:
[tex]M = 7000*(1 + \frac{4.5}{100})^5\\M = 7000*(1 + 0.045)^5\\M = 7000*(1.045)^5\\M = 8723.274\\[/tex]
He'll have approximately $8723.3 on his account in five years.
