Final answer:
To find the total amount in the account, the future value of each deposit is calculated separately, accumulated over different times, assuming an annual compounding interest rate similar to the provided example. The growth of each deposit depends on the number of years it's invested, using the formula for compound interest.
Step-by-step explanation:
To calculate the final amount in the account, we need to consider the interest that is compounded monthly. Since the actual monthly interest rate and number of total compounding periods are not provided, we will use the reference information where the interest is compounded annually. We will illustrate a similar compounding process and assume the annual interest rate akin to the 10% mentioned in the reference.
For each deposit, we'll calculate the amount it will grow to by the end of five years using the formula A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is time in years.
Since the interest is compounded annually, n would be 1 in our formula. We calculate each deposit's growth separately and add them together:
- Year 0: $8000 grows for 5 years
- Year 1: $7000 grows for 4 years
- Year 2: $7000 grows for 3 years
- Year 3: $6000 grows for 2 years
- Year 4: $6000 grows for 1 year
- Year 5: $5000 grows for 0 years - no interest accrued since it's deposited at the end of year 5
The total amount from these calculations will give the final answer, which we would then compare to the provided answer choices.