Answer:
It'll be worth approximately $8779.3 after 5 years.
Step-by-step explanation:
Since it's compounded we need to use the appropriate formula to solve this problem, which is shown below:
M = C*(1 + r)^t
Where M is the final amount, r is the interest rate and t is the time elapsed in years. Applying the data from the problem we have:
M = 7500*(1 + 0.032)^5
M = 7500*(1.032)^5
M = 8779.2971
It'll be worth approximately $8779.3 after 5 years.
