To calculate the amount of money in the account at the end of 7 years, use the compound interest formula A = P(1 + r/n)^(nt) is $5613.1.
To calculate the amount of money in the account at the end of 7 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Here, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, the principal amount is $4,000, the annual interest rate is 5% (or 0.05), the interest is compounded quarterly (n = 4), and the number of years is 7.
Plugging these values into the formula, we get:
A = 4000(1 + 0.05/4)^(4×7)
Simplifying this equation will give us,
A = 4000 × 1.0125²⁸
A= 4000 × 1.403275
A= 5613.1.
Therefore, the amount of money in the account at the end of 7 years is equal to $5613.1.