Final answer:
To calculate the worth of the investment at the end of 4 years, you can use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. Plugging in the given values, the investment is worth $675.31 at the end of 4 years.
Step-by-step explanation:
To calculate the worth of the investment at the end of 4 years, we can use the formula: A = P(1 + r/n)^(nt), where:
- A is the final amount
- P is the principal amount (initial investment)
- r is the annual interest rate (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, the principal amount is $600, the annual interest rate is 3% (converted to decimal, it is 0.03), the interest is compounded yearly (n = 1), and the number of years is 4 (t = 4).
Plugging these values into the formula, we get:
A = 600(1 + 0.03/1)^(1*4)
A = 600(1.03)^4
A = 600(1.125508)
A = 675.305
Therefore, the investment is worth $675.31 at the end of 4 years.