Given: Principal amount = 5,000 interest rate = 6.25% number of times the interest is compounded per year; 12 times, monthly terms = number of years; 5 years, 60 months
A = P (1 + r/n)^nt A = 5,000 (1 + .0625/12)^12*5 A = 5,000 (1 + 0.005)⁶⁰ A = 5,000 (1.35) A = 6,750
