Answer:
The certificate will be $8541.33 of worth in 5 years.
Explanation:
A = P (1 + r / n)ⁿˣ
P = Principal amount = $7000
r = Annual interest rate = 4%
n = Number of compounds per year = 4
x = time in years = 5
A = Amount after time 'x' = ??
A = 7000 (1 + 0.04 / 4)⁴ˣ⁵
A = 7000 (1 + 0.01)²⁰
A = 7000 (1.01)²⁰
A = 7000 (1.2202)
A = 8541.33
