Answer: a. After 5 years, you will have approximately= $<u> 6,850.43 .</u>
b. The interest is approximately =$<u> 1850.43</u>
Step-by-step explanation:
Given: Principal amount (P) = $5000
Rate of interest (r)= 6.5% = 0.065
n= 1 (compounded annually)
a) Time (t) = 5 years
Formula for accumulated amount :

Then,

Hence, After 5 years, you will have approximately $ 6,850.43 .
b) Compound interest = A-P
= $ 6,850.43 - $ 5,000
= $ 1850.43
Hence, The interest is approximately $ 1850.43.