Final answer:
The future value of a $5,000 investment in a money market account after ten years with a 4% annual interest rate compounded monthly is approximately $7,366.43.
Step-by-step explanation:
To calculate the future value of an investment with compound interest, we can use the formula:
FV = P(1 + r/n)^(nt)
- FV = future value
- P = principal amount ($5,000)
- r = annual interest rate (4%)
- n = number of times interest applied per time period (12 for monthly)
- t = number of time periods (10 years)
Using this formula, we can calculate the future value of the $5,000 investment to be approximately $7,366.43. Therefore, the correct answer is B) $7,366.43.