Answer:
$215.50
Explanation:
To calculate the amount of interest that Albert will earn on his account over the course of 4 years, we can use the formula for compound interest:
Interest = principal * (1 + rate/n)^(n*t) - principal
Where:
principal is the initial amount of money in the account ($1,000 in this case)
rate is the annual interest rate (5% in this case)
n is the number of times that interest is compounded per year (annually in this case, so n=1)
t is the number of years the money is invested (4 years in this case)
Plugging these values into the formula, we get:
Interest = $1,000 * (1 + 0.05/1)^(1*4) - $1,000
= $1,000 * (1.05)^4 - $1,000
= $1,000 * 1.2155 - $1,000
= $215.50
To the nearest cent, the interest Albert will earn in 4 years is $215.50.