Answer:

Explanation:
For a problem like this, we would use the compound interest formula:

P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, lets change 4% into a decimal:
4% ->
-> 0.04
Since the interest is compounded 4 times a year, we will use 4 for n.
The equation is shown below:
