Question

Miguel deposits $5000 in an account

Answer 1

Then the amount of money will he have in his account after 10 years will be $7,454.16. Then the correct option is B.

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

Miguel deposits $5000 in an account earning 4% interest compounded monthly.

Then the amount of money will he have in his account after 10 years will be

We know the compound interest formula.

$A = P (1 + r)^t$

Where

A = amount

P = principal

r = rate of interest

t = time period (in year)

Then we have

$\rm A = 5000 (1 + 0.04)^{10}\\\\A = 5000 (1.04)^{10}\\\\A = \ \ 7454.16$

More about the compound interest link is given below.

brainly.com/question/25857212

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