Answer:
balance after 4 years = $4502
Step-by-step explanation:
Formula to get the final amount when compounded annually is,
Final amount = [tex]\text{Principal amount}\times (1+\frac{r}{n})^{nt}[/tex]
Here, r = rate of interest
n = number of compounding per year
t = Duration of investment
From the given question,
Final amount = [tex]4000(1+\frac{0.03}{1})^{(1\times 4)}[/tex]
= [tex]4000(1.03)^4[/tex]
= 4502.0352
≈ $4502
Therefore, balance after 4 years = $4502
