Answer:
$4,723.21
Step-by-step explanation:
Formula for COMPOUND INTEREST:
A = P ( 1 + r/n) ^ nt
Where A = principal money + interest earned,
P = Principal Money
r = interest rate in decmial
n = no. of times i.rate is compounded
nt = time
Since the qns asked to be compounded /monthly', you have the following formula:
A = 3250 ( 1 + 7.5%/12) ^ 60
7.5% is a yearly rate so divide it by 12 (as in 12 months)
60 = 5 years x 12 months
so use a calculator and you'll get $4723.206, round off and it's $4723.21
