Answer:
The total amount you will have in your account=5,959.38
Step-by-step explanation:
The total amount one will have in there account when the interest is compounded annually can be expressed as;
A=P(1+r/n)^nt
where;
A=future value of investment after time t
P=Principal amount based on initial deposit
r=Annual interest rate
n=number of times the interest is compounded annually
t=number of years the investment is deposited
In our case;
P=4,000
r=8%=8/100=0.08
n=12
t=5
Replacing;
A=4,000(1+0.08/12)^(12×5)
A=4,000(1.007)^60
A=5,959.38
The total amount you will have in your account=5,959.38
