Isabella will have $6147 after 4years.
<h3>
What is compound interest?</h3>
Compound interest is the addition of interest to the principal sum of a loan or deposit.
C.I. = Amount - Principle
Amount is given as-
A = P {1 + (r/n)}^(nt)
where A is the final amount
P is the initial principle amount
r is the interest rate
t is the time period elapsed
n is number of times interest applied per time period
Now it is given that
P = $5000
r = 5.3%
n = 1 years, since its annually
t = 4 years
⇒ A = P {1 + (r/n)}^(nt)
⇒ A = 5000 {1 + (5.3/100*1)}^(4*1)
⇒ A = 5000 {1 + (0.053)}^(4)
⇒ A = 5000 {1.053}^(4)
⇒ A = 5000 * 1.23
⇒ A = $6147.28
⇒ A ≈ $6147
Hence,Isabella will have $6147 after 4years.
More about Compound interest :
brainly.com/question/17197734
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