Answer:
$5507.98
Explanation:
To find the value of the account, we use the compound interest formula below:
[tex]Amount\: at\: Compound\: Interest,A=P(1+\frac{r}{n})^{nt}[/tex]From the given information:
• Principal,P=$4500
,• Interest Rate, r=4.5%=0.045
,• Number of compounding periods, n=12 (Monthly)
,• Time, t=4.5 years
Substituting the given values, we have:
[tex]\begin{gathered} A=4500(1+\frac{0.045}{12})^{12\times4.5} \\ =4500(1+0.00375)^{54} \\ =4500(1.00375)^{54} \\ =\$5507.98 \end{gathered}[/tex]The value of the account when the customer takes the money at the end of the 4.5 years is $5507.98.
