Answer :
In this case, we can apply the formula for the future value of an investment, which is:
[tex]FV=PV(1+I)^n[/tex]Where FV is the future value, PV is the principal value = $5,000, I is the interest rate in decimal form I=5%/100%=0.05 and n is the number of compounding periods, n=12.
By replacing these values in the formula we obtain:
[tex]\begin{gathered} FV=5000(1+0.05)^{12} \\ FV=5000(1.05)^{12} \\ FV=5000\cdot1.796 \\ FV=8979.28 \end{gathered}[/tex]So, after 12 years there will be $8979.28 in the savings account.