Question

Find the balance in the account after the given period.

Answer 1

Answer:

balance after 4 years = $4502

Step-by-step explanation:

Formula to get the final amount when compounded annually is,

Final amount = $\text{Principal amount}\times (1+\frac{r}{n})^{nt}$

Here, r = rate of interest

n = number of compounding per year

t = Duration of investment

From the given question,

Final amount = $4000(1+\frac{0.03}{1})^{(1\times 4)}$

                      = $4000(1.03)^4$

                      = 4502.0352

                      ≈ $4502

Therefore, balance after 4 years = $4502