Don put $4,000 in a savings account with an interest rate of 4% for three years. If the interest is compounded annually, how much money will he have at the end of the three years?

$4,499.46

Step-by-step explanation:

We can use the compound interest formula for this problem:

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

Now lets plug the values into the equation as shown below:

Don will have $4,499.46 at the end of the three years.

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