Question

uses appropriate compound interest formula to find the amount that will be in each account given the dated conditions. 43,000 invested at 4% annual interest for four years compounded if the interest is compounded annually, there will be how much in the account after four years.

Answer 1

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.