Question

How much did Arlo have in the account after 4 years?

Answer 1

A. $4955.30

The answer will be A.

Answer 2

A. $4955.30

Explanation:

The formula for the accumulated value at compound interest is:

`A(t)=P(1+i)^t`

In the given problem:

• The principal, P = $4,000

,

• Interest Rate, r = 5.5% = 0.055

,

• Time, t = 4 years

Substitute these values into the formula:

`\begin{gathered} A(4)=4000(1+0.055)^4 \\ =4000(1.055)^4 \\ =\$4955.30 \end{gathered}`

The amount Ario has in the account after 4 years is $4955.30.