Then the amount of money will he have in his account after 10 years will be $7,454.16. Then the correct option is B.
Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.
Miguel deposits $5000 in an account earning 4% interest compounded monthly.
Then the amount of money will he have in his account after 10 years will be
We know the compound interest formula.
[tex]A = P (1 + r)^t[/tex]
Where
A = amount
P = principal
r = rate of interest
t = time period (in year)
Then we have
[tex]\rm A = 5000 (1 + 0.04)^{10}\\\\A = 5000 (1.04)^{10}\\\\A = \$ \ 7454.16[/tex]
More about the compound interest link is given below.
https://brainly.com/question/25857212
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