Answer:
If kyle keeps the money in the account for 4 years, the new balance is $1,417.37.
Step-by-step explanation:
You can use the formula to calculate the future value to find the money in the account after 4 years:
FV=PV*(1+i)^n
FV= future value
PV= present value=$1,200
i= interest rate=4.25%=0.0425
n=number of periods of time=4
FV=1,200*(1+0.0425)^4
FV=1,200*(1.0425)^4
FV=1,417.37
According to this, the answer is that if kyle keeps the money in the account for 4 years, the new balance is $1,417.37.
