Final answer:
To calculate the total amount in the account after 8 years, use the compound interest formula.
Step-by-step explanation:
To calculate the total amount in the account, we can use the compound interest formula: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $5,000, r = 7% or 0.07, n = 4 (quarterly compounding), and t = 8 years.
Substituting the values into the formula, we get:
A = 5000(1 + 0.07/4)^(4*8)
Simplifying the expression, we have:
A ≈ $7,858.97
Therefore, the total amount in the account after 8 years will be approximately $7,858.97.