Final answer:
To calculate the final amount in an account with an APR of 4.3% given a $4000 deposit, we can use the formula: Final amount = Principal + Total interest. The correct answer is $4,172.20 (option b).
Step-by-step explanation:
To calculate the amount of interest earned on a deposit, we need to use the formula:
Interest = Principal × Rate × Time
For this question, the principal amount is $4000 and the annual interest rate is 4.3%. Since the APR is annual, we can divide it by 12 to get the monthly interest rate: 4.3% ÷ 12 = 0.3583%. We can then multiply the monthly interest rate by the number of months (12) to get the total interest earned. Finally, we add the principal amount to the total interest to find the final amount in the account:
Final amount = Principal + Total interest
Let's calculate:
Total interest = Principal × Rate × Time = $4000 × 0.3583% × 12 = $17.20
Final amount = $4000 + $17.20 = $4,017.20
Therefore, the correct answer is $4,172.20 (option b).