Answer :
Answer: $3122.00
Explanation:
The value of the account at the end of the fifth year goes thus:
A = [P (1 + r) - 1/r] × (1 + r)
where,
P = principal = $500
R = rate = 7.5%
T = time =5 years
A = 500(1 + 7.5%)^5 - 1]/0.075 × 1.075
A = 3122.00
Solving the above equation, we can infer that the value of the account at the end of the fifth year will be $3122.00