Answer:
The account balance at the end of the first year can be calculated using the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final account balance
P = the initial investment ($3,000 in this case)
r = the annual interest rate (4% or 0.04 in decimal form)
n = the number of times interest is compounded per year (assuming it is compounded annually, n = 1)
t = the number of years (in this case, t = 1)
Substituting the values into the formula:
A = 3000(1 + 0.04/1)^(1*1)
A = 3000(1 + 0.04)^1
A = 3000(1.04)
A = $3,120
Therefore, the account balance at the end of the first year will be $3,120.
Explanation:
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