Solution:
Given:
[tex]\begin{gathered} P=\text{ \$4000} \\ r=3.7\text{ \%}=\frac{3.7}{100}=0.037 \\ n=2.....................(semiannually) \\ t=5years \end{gathered}[/tex]Using the compound interest formula;
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Substituting the values into the formula:
[tex]\begin{gathered} A=4000(1+\frac{0.037}{2})^{2\times5} \\ A=4000(1+0.0185)^{10} \\ A=4000(1.0185)^{10} \\ A=4000\times1.0185^{10} \\ A=4804.74 \end{gathered}[/tex]Therefore, the amount she will have in the account after 5 years is $4,804.74
