Respuesta :
$4419.76 on apex and I don’t know how to explain it but it won’t let me post otherwise, so.... good luck this year.
The compound interest is the financial phenomenon in the investment purpose where the interest charged over the principal amount becomes the part of principle after its receipt to the recepient.
The interest earned becomes the part of investment amount and over the interest amount also the interest is charged in a further period. This increases the value of investment rapidly.
The amount of withdrawal is $4,419.76
Given,
Principle amount (P)=$4,000
rate of interest (r)= 5% or 0.05
Number of months (n)= 24
Number of years (t) =2 years
[tex]\begin{aligned}\text{Amount of Withdrawal}&=\text{P}\left(\frac{1+\text{r}}{\text{n}} \right )^{\text{n}\times\text{t}}\\&=\$4,000\times\left(\frac{1+0.05}{24} \right )^{24\times2}\\&=\$4,000\times\left(0.04375 \right )^{48}\\&=\$4,000\times1.1050\\&=\$4,420 \end{aligned}[/tex]
The amount of withdrawal is $4,420 or as per the options, it is $4,419.76.
To know more about the power of compounding, refer to the link:
https://brainly.com/question/15177389
