Answer:
There would be $7,058.47 in the saving account.
Explanation:
The amount of money, after t years, with compound interest, is given by the following formula:
In which:
P is the amount of the initial deposit.
r is the interest rate, as a decimal.
n is the number of compoundings per year.
t is the number of years.
In this question:
Deposit of $5,500, so P = 5500.
5 years, so t = 5.
Rate of 5%, so r = 0.05.
Monthly compounding, so 12 times a year, which means that n = 12.
Then
There would be $7,058.47 in the saving account.