Answer: B. $8704.70
Step-by-step explanation:
Given : Principal amount (P)=$7000
Rate of interest (i) {in decimal} =[tex]\frac{5.6}{100}=0.056[/tex]
Time period (t)= 4 years
The formula for compound amount is [tex]A(t)=P(1+i)^t[/tex]
Now, the total amount in Catelyn's account after 4 years [tex]A(4)=7000(1+0.056)^4\\\Rightarrow\ A(4)=7000(1.056)^4\\\Rightarrow\ A(4)=7000(1.243528)\\\Rightarrow\ A(4)=8704.696\approx8704.70[/tex]
Hence, Catelyn have $8704.70 in her account after 4 years .
