Final answer:
The total amount accumulated after 4 years is $6123.45. The interest earned is $1123.45.
Step-by-step explanation:
To compute the total amount accumulated and the interest earned using compound interest formula, we can use the formula A = P(1 + r/n)nt. In this case, the principal (P) is $5000, the interest rate (r) is 4.5% (or 0.045), the number of compounding periods per year (n) is 12 (since it's compounded monthly), and the time (t) is 4 years.
Using the formula, we can plug in the values and calculate the total amount accumulated as follows: A = 5000(1 + 0.045/12)(12*4) = $6123.45.
To find the interest earned, we subtract the original principal from the total amount accumulated: Interest = A - P = $6123.45 - $5000 = $1123.45.