The formula to obtain the future value (FV) is,
[tex]FV=PV(1+\frac{r}{n})^{nt}[/tex]
Where,
[tex]\begin{gathered} FV=\text{Future Value=?} \\ PV=\text{Present Value = \$5000} \\ r=4.2\text{ \%=}\frac{\text{4.2}}{100}=0.042 \\ n=12 \\ t=n\text{umber of years }=5\text{years} \end{gathered}[/tex]
Therefore,
[tex]\begin{gathered} FV=5000(1+\frac{0.042}{12})^{12\times5}=5000(1+0.0035)^{60} \\ FV=5000(1.0035)^{60}=5000\times1.233225821=6166.129106 \\ FV=6166.129106\approx6166.13(nearest\text{ cent)} \\ \therefore FV=\text{ \$6166.13} \end{gathered}[/tex]
ence, there will be $6`166.13 in the account after 5years.
