Final answer:
The balance in the account after 5 years with a 4% interest compounded monthly is approximately $603.05.
Step-by-step explanation:
To calculate the balance in the account after 5 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
- A - the balance in the account
- P - the initial deposit ($520)
- r - the interest rate (4% or 0.04)
- n - the number of times the interest is compounded per year (12 for monthly compound interest)
- t - the number of years (5)
Plugging in the values, the formula becomes:
A = 520(1 + 0.04/12)^(12*5)
Simplifying, we get:
A = 520(1 + 0.003333)^60
Calculating, we find that the balance in the account after 5 years is approximately $603.05.