Answer: the final investment amount is $6449
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 4000
r = 12% = 12/100 = 0.12
n = 12 because it was compounded 12 times in a year.
t = 4 years
Therefore,.
A = 4000(1 + 0.12/12)^12 × 4
A = 4000(1+ 0.01)^48
A = 4000(1.01)^48
A = $6449
