Answer:
$4,499.46
Step-by-step explanation:
We can use the compound interest formula for this problem:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, lets change 4% into a decimal:
4% -> [tex]\frac{4}{100}[/tex] -> 0.04
Now lets plug the values into the equation as shown below:
[tex]A=4,000(1+\frac{0.04}{1})^{1(3)}[/tex]
[tex]A=4,499.46[/tex]
Don will have $4,499.46 at the end of the three years.
