To answer this question, we need to take into account the next formula:
[tex]FV=PV(1+\frac{i}{12})^{12\cdot n}[/tex]Where,
FV is the Future Value.
PV is the Present Value.
i is the interest rate.
n = interest periods
The number of compounded periods, in this case, is 12 (compounded monthly).
Then, we have that:
PV = $4500
i = 4.5 = (4.5/100) = 0.045
And we want to know the value for FV after 4.5 years.
Then, applying the formula, we have:
[tex]FV=4500\cdot(1+\frac{0.045}{12})^{12\cdot(4.5)}_{}\Rightarrow FV=5507.98[/tex]Then, the value of the account when the customer takes the money at the end of the 4.5 years is $5507.98.
