Answer:
Step-by-step explanation:
For a problem like this, we would use the compound interest formula:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, lets change 4% into a decimal:
4% -> -> 0.04
Since the interest is compounded 4 times a year, we will use 4 for <em>n</em>.
The equation is shown below: