Final answer:
Using the compound interest formula A = P(1 + r/n)^(nt), the future value of $43,000 invested at 4% annual interest for four years, compounded annually, is approximately $50,263.92.
Step-by-step explanation:
To calculate the future value of an investment using compound interest, we use the compound interest formula A = P(1 + r/n)^(nt), where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
In this case, we have the following values:
- P = $43,000
- r = 4% or 0.04 (as a decimal)
- n = 1 (since it's compounded annually)
- t = 4 years
Now, let's plug these values into the formula to find A:
A = 43,000(1 + 0.04/1)^(1*4)
A = 43,000(1 + 0.04)^4
A = 43,000(1.04)^4
A = 43,000(1.16985856)
A ≈ $50,263.92
Therefore, after four years, the account will have approximately $50,263.92 when the interest is compounded annually.