Answer:
$3122.00
Step-by-step explanation:
Since we have been given that
Initial amount deposited into a savings account each year = $500
Rate of interest compounded annually = 7.5%
Number of years = 5 years
So, Amount in the account at the end of the fifth year would be:
A = P( 1+r )^5} - 1
500{(1+7.5/100) - 1 }÷ ( 7.5/100)} (1+7.5/100)
500{( 1.075^5 -1/0.075} × 1.075
500( 1.4356 -1/0.075) × 1.075
500( 0.4356/0.075) × 1.075
500(5.80839)×1.075
= 3122.01
$3122.00
