Answer:
A. $4955.30
Explanation:
The formula for the accumulated value at compound interest is:
[tex]A(t)=P(1+i)^t[/tex]
In the given problem:
• The principal, P = $4,000
,
• Interest Rate, r = 5.5% = 0.055
,
• Time, t = 4 years
Substitute these values into the formula:
[tex]\begin{gathered} A(4)=4000(1+0.055)^4 \\ =4000(1.055)^4 \\ =\$4955.30 \end{gathered}[/tex]
The amount Ario has in the account after 4 years is $4955.30.
