Respuesta :
Using compound interest, it is found that $8,115.21 would be in the account after 7 years.
What is compound interest?
The amount of money earned, in compound interest, after t years, is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
In which:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
In this problem, considering that an year has 365 days, the parameters are as follows:
P = 5600, r = 0.053, n = 365, t = 7.
Hence the amount is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
[tex]A(7) = 5600\left(1 + \frac{0.053}{365}\right)^{365 \times 7}[/tex]
A(7) = 8115.21.
Hence, $8,115.21 would be in the account after 7 years.
More can be learned about compound interest at https://brainly.com/question/25781328
