Answer:
[tex]\$4.81[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
step 1
in this problem we have
[tex]t=5\ years\\ P=\$5,656.30\\ r=0.041\\n=12[/tex]
substitute in the formula above
[tex]A=\$5,656.30(1+\frac{0.041}{12})^{12*5}=\$6,940.82[/tex]
step 2
in this problem we have
[tex]t=5\ years\\ P=\$5,656.30\\ r=0.041\\n=4[/tex]
substitute in the formula above
[tex]A=\$5,656.30(1+\frac{0.041}{4})^{4*5}=\$6,936.01[/tex]
step 3
Find the difference
[tex]\$6,940.82-\$6,936.01=\$4.81[/tex]
