Answer:
$ 679.43
Step-by-step explanation:
Since, the amount formula in compound interest is,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where,
P = initial amount,
r = annual rate of interest,
n = number of compounding periods in a year,
t = number of years,
Here, P = $ 4,000, r = 4% = 0.04, t = 4 years, n = 1,
So, the amount after 4 years would be,
[tex]=4000(1+0.04)^4\approx \$4679.43[/tex]
Hence, the amount of interest,
[tex]I=A-P=4679.43-4000 = \$ 679.43[/tex]
