Answer:
The total amount after five years = $7,000
Step-by-step explanation:
<u><em>Step(i):</em></u>-
Given Esther deposited $5,000 into an account
Principal amount 'P' = 5000
Given rate of interest (R) = 8%
r = R / 100 = 0.08 per year
<u><em>Step(ii):</em></u>-
The total amount after 5 years
![A = P( 1 + r t )](https://tex.z-dn.net/?f=A%20%3D%20P%28%201%20%2B%20r%20t%20%29)
![A = 5000(1+ (0.08 X 5) = 7000](https://tex.z-dn.net/?f=A%20%3D%205000%281%2B%20%280.08%20X%205%29%20%3D%207000)
<u><em>Final answer</em></u>:-
The total amount after five years = $7,000