To calculate the final account balance after 7 years with a 5% interest rate compounded 12 times per year, we can use the formula:
A = P(1 + r/n)^(nt)
where:
A = the final account balance
P = the initial principal (the amount Heather invested), which is $4,625 in this case
r = the annual interest rate, which is 5%
n = the number of times the interest is compounded per year, which is 12 in this case
t = the number of years the money is invested, which is 7 in this case
Substituting these values into the formula, we get:
A = $4,625(1 + 0.05/12)^(12*7)
A = $4,625(1.0041667)^84
A = $4,625(1.480244)
A = $6,849.46
Therefore, Heather’s account balance will be $6,849.46 after 7 years if the interest is compounded 12 times each year.